Air-bag maker Takata agrees to pay $70M penalty; company is accused of facilitating 'massive crisis'
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Takata Corp. has agreed to pay a $70 million fine for delays in disclosing defects that could cause its air bags to explode.
The National Highway Traffic Safety Administration announced the fine Tuesday, the New York Times and the Wall Street Journal (sub. req.) report . The fine could climb to a record $200 million if the company violates the consent order.
During a news conference, U.S. Transportation Secretary Anthony Foxx said Takata manipulated test data and misled regulators, causing “a serious problem to become a massive crisis.”
The consent order requires Takata to phase out the use of inflators with ammonium nitrate propellant, which is believed to be a factor in its air bag ruptures. An independent monitor will maintain “unprecedented oversight” on the company over the next five years, according to a press release.
The defective air bags have been linked to eight deaths, spurring the recall of more than 19 million vehicles.
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