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Major Automobile Companies Recall Deadly Airbags from Takata Corporation (TYO:7312)

The US is facing the largest automotive recall in its history with major companies expanding its recall of vehicles carrying deadly Takata Corporation (TYO:7312) airbags. The Japanese airbag manufacturer announced last week that more than 53 million vehicles in the world were running with these deadly bags. Major automobile companies in the country including, Fiat Chrysler Automobiles NV (NYSE:FCAU), Honda Motor Co Ltd (ADR) (NYSE:HMC) and Bayerische Motoren Werke AG (ETR:BMW) expanded their recall for the vehicles a few days back following the announcement.

Six Deaths in Honda Vehicles

Currently, more than 34 million such vehicles are in the United States, making it important for the auto companies declare the recall immediately. According to the safety regulators and the officials of Takata, the airbag inflates when exposed to moisture can explode with massive force over a period. Thus, it can lead to shooting of metal balls or shrapnel into the vehicles. The Takata regulators have said that worldwide six deaths have occurred in Honda vehicles due to these deadly bags.

FCA has made a worldwide recall of around 5.22 million vehicles sold in between 2003 to 2011 with the Takata air bags. Out of these models, more than 4.5 million vehicles are in the United States and most of these models were also involved in previous campaigns of recall. The filing by the FCA shows that the regulators and the automakers are still trying to find out the root cause of the problem. It also means that even the replacements installed, cannot guarantee complete safety to the customers.

Honda also expanded its recall for the vehicles with the killing air bags. There are around 350, 000 Honda vehicles with the Takata bags in the United States and more than 340,000 are in Japan. Just like the FCA, Honda too had recalled some of its vehicles couple of years back. Honda has recalled around 20 million vehicles with the airbag parts since 2008.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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