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Takata Corporation

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Takata Corporation
Native name
[タカタ株式会社] Error: {{Lang}}: unrecognized language code: jp (help)
Company typePublic KK
OTC Pink: TKTDQ
IndustryAutomotive industry
FoundedShiga Prefecture (1933; 91 years ago (1933))
FounderTakezo Takada
DefunctApril 11, 2018 (2018-04-11)
FateAcquired by Key Safety Systems
SuccessorJoyson Safety Systems
Headquarters
Roppongi, Minato-ku, Tokyo, 106-8488
,
Japan
Area served
Worldwide
Key people
Shigehisa Takada
(Chairman and CEO)
Products
RevenueIncrease ¥ 718.003 billion (2016)
Increase¥ 42.133 billion (2016)
Increase ¥ -13.075 billion (2016)
Number of employees
50,530 (as of March 31, 2016)
WebsiteOfficial website
Footnotes / references
[1][2][3]

Takata Corporation (タカタ株式会社, Takata Kabushiki Gaisha) was an automotive parts company based in Japan. The company had production facilities on four continents, with its European headquarters located in Germany, where it also had nine production facilities.[4] In 2013, a series of deaths and injuries associated with defective Takata airbag inflators manufactured by their Mexican subsidiary in Coahuila, had led Takata to initially recall 3.6 million cars equipped with such airbags. Further fatalities caused by the airbags have led the National Highway Traffic Safety Administration (NHTSA) to order an ongoing, nationwide recall of more than 42 million cars, the largest automotive recall in U.S. history.[5][6][a] In June 2017, Takata filed for bankruptcy.[7] It was acquired by Key Safety Systems. [8]

History

Takata steering-wheel in a Mercedes-Benz E-Class

Takata was founded in 1933 in Shiga Prefecture, Japan, by Takezo Takada and started to produce lifelines for parachutes, and other textiles. In the early 1950s, the company started to research seat belts. Later they incorporated as "Takata". In the 1960s, Takata started to sell seat-belts and built Japan's first crash test plant for testing seat-belts under real world conditions[9].

In the 1970s, Takata developed child restraint systems. In the 1980s, the company changed its name to "Takata Corporation" and expanded to Korea, the United States, and later to Ireland, to sell seat-belts. In the 1990s, Takata expanded internationally.

In 2000, Takata Corporation acquired German competitor Petri AG, forming the European subsidiary Takata-Petri, renamed Takata AG in early 2012.[10] Takata AG makes steering wheels and plastic parts, not only for the automotive industry.

Recalls

1995 seat belt recall

In May 1995, a recall in the U.S. affecting 8,428,402 predominantly Japanese built vehicles made from 1986 to 1991 with seat belts manufactured by the Takata Corporation of Japan, was begun. It was called at the time the "second largest recall in the 30-year history of the Department of Transportation (DOT)". The recall was prompted by an investigation (PE94-052) carried out by the National Highway Traffic Safety Administration (NHTSA) on Takata-equipped Honda vehicles, after many of their owners complained of seat belt buckles either failing to latch, latching and releasing automatically, or releasing in accidents. It revealed that potentially faulty Takata seat belts were not limited only to Honda vehicles, but to other Japanese imports as well.

NHTSA opened up a second investigation on Takata seatbelts broadly (EA94-036) as well as individual investigations on the vehicle manufacturers using Takata seat belts to determine the magnitude of the defect. This second investigation was only limited to the front seat belt buckles and in particular Takata's 52X and A7X models. This determined that a total of 11 manufacturers were affected by the investigation.

Japanese models sold in the United States by American Honda Motor Co., Isuzu Motors of America Inc., Mazda Motor of America Inc., Nissan North America, Daihatsu Motor Co. American, Mitsubishi Motor Sales of America Inc. and Subaru of America Inc. also had affected seat belt buckles.

Moreover, Chrysler, General Motors and Ford all had various models manufactured by Japanese companies with the seat belt buckles concerned, but sold under American names such as the Dodge Stealth and the Geo series (except Prizm) under General Motors.

Ford had vehicles such as the Probe manufactured by Mazda on its MX-6 platform and the Festiva made by Kia in South Korea, but engineered by Mazda that also had the seat belts. However, unlike Chrysler and General Motors, Ford did not admit that their seat belts could be defective.

Initially, some Japanese manufacturers suspected that the seat belt failures were a result of user abuse, rather than a design failure; however, the nine-month investigation by NHTSA concluded that the cause of the defect was that the buckles were made of ABS plastic. Through exposure to ultraviolet light over a period of time, the plastic became brittle and pieces fell off, causing a jamming of the release button mechanism.

The manufacturers involved agreed to a voluntary recall, though this did not go smoothly. Only 18% of the 8.9 million cars and trucks with the Takata belt buckle were repaired two years after the recall had begun. In addition, NHTSA assessed a $50,000 civil penalty against both Honda and Takata for failing to notify the agency about the seat belt defect in a timely manner. Honda was fined because NHTSA believed the company knew about the hazard at least five years before the recall, but never reported the problem to NHTSA, nor offered to conduct a voluntary recall.[11]

Defective airbag recalls (2013–present)

Takata began making airbags in 1988 and, as of 2014, held 20 percent of the market. During 2013, several automakers began large recalls of vehicles due to Takata-made airbags. Reports state that the problems may have begun a decade before.[12]

Honda stated they knew of more than 100 injuries and thirteen deaths (seven in the United States plus six in Malaysia) that were related to Takata airbags.[12][13][14][15][16]

In April and May 2013, a total of 3.6 million cars were recalled due to defective Takata airbags.[12] All of those airbags were made at, or otherwise used inflator units manufactured by, Takata's Monclova Plant[17] in Coahuila, Mexico, operated by Takata's North American/Mexican subsidiary, TK Holdings Inc.[18] In November 2014, BMW announced they will move any orders from the Mexican plant to a Takata plant in Germany.[19]

In June 2014, Takata admitted their Mexican subsidiary had mishandled the manufacture of explosive propellants and improperly stored chemicals used in airbags. Identifying vehicles with defective airbags was made more difficult by the failure of TK Holdings Inc. to keep proper quality control records. That prompted another round of recalls in June 2013.[12]

In their statement the company said, "We take this situation seriously, will strengthen our quality control and make a concerted effort to prevent a recurrence".[12]

On June 23, 2014, auto manufacturers BMW, Chrysler, Ford, Honda, Mazda, Nissan, and Toyota announced they were recalling over three million vehicles worldwide due to Takata Corporation-made airbags. The reason was that they could rupture and send flying debris inside the vehicle. This was in response to a US National Highway Traffic Safety Administration (NHTSA) investigation that was initiated after the NHTSA received three injury complaints.[12]

In a statement on June 23, 2014, Takata said they thought excessive moisture was the cause of the defect. Haruo Otani, an official at the vehicle recall section of the Japanese Ministry of Land, Infrastructure, Transport and Tourism, said that moisture and humidity could be seeping inside inflators, destabilizing the volatile propellant inside.[12]

In July 2014, a pregnant Malaysian woman was killed in a collision involving her 2003 Honda Civic which contained the defective airbag. The woman, aged 42, died when a metal fragment from a ruptured driver’s airbag sliced into her neck in the accident in which she was driving at around 30 km/h when another vehicle hit her at a junction, according to a lawsuit filed by her father at a Miami federal court. Her daughter, delivered after the mother's death, died three days later.[20][21]

On November 18, 2014, the NHTSA ordered Takata to initiate a nationwide airbag recall. The action came as 10 automakers in the U.S. recalled hundreds of thousands of cars equipped with potentially faulty air bags manufactured by Takata.[22]

As of May 19, 2015, Takata is now responsible for the largest auto recall in history. Takata has already recalled 40 million vehicles across 12 vehicle brands for "Airbags that could explode and potentially send shrapnel into the face and body of both the driver and front seat passenger".[23] This recall will bring the number up to about 53 million automobiles eligible for this recall. In November 2015, Takata was fined $200 million ($70 million paid upfront) by U.S. federal regulators in response to Takata admittance of a fault.[24] Toyota, Mazda and Honda have said that they will not use ammonium nitrate-based inflators.[25][26]

On May 4, 2016, the NHTSA announced recall campaigns of an additional estimated 35-40 million inflators, adding to the already 28.8 million inflators previously recalled.[27]

On August 22, 2016, a truck transporting Takata airbag parts was involved in a crash in Quemado, Texas that caused the cargo to explode, destroying a house and killing a woman inside.[28]

On January 13, 2017, the United States charged three Takata executives, Shinichi Tanaka, Hideo Nakajima and Tsueno Chikaraishi for Takata's exploding airbags.[29] The company agreed to plead guilty and to pay $1 billion to resolve the investigation, which includes a $25 million fine, $125 million for victim compensation and $850 million to compensate automobile manufacturers. At least 16 deaths are linked to the defective airbags.[30]

On 28 February 2018 the Australian Federal Government announced the compulsory recall of all cars fitted with Takata airbags. "About 2.3 million vehicles will be subject to the compulsory recall and the airbags must be replaced within two years."[31]

On 1 March 2018, it was announced that 106,806 Volkswagen models, including the Golf, Passat, Polo, CC Eos and Up! have been recalled for containing defective Takata airbags.

On 2 March 2018, Holden announced that the airbag recall now includes 330,000 of their Australian vehicles, despite not originally having any of their cars in the federal government's compulsory recall list.[32]

On 4 April 2018, the New Zealand government, having decided "they present the highest safety risk to drivers and passengers,"[33] announced a compulsory recall of 50,000 vehicles fitted with Alpha-type Takata airbags. This compulsory recall is said to be only the second in New Zealand's history and the largest vehicle recall of its kind. The Ministry of Commerce and Consumer Affairs stated that it will also block the importation of any vehicles whose faulty airbags have not been replaced.[34]

Cars affected

In 2014, the NHTSA received notification from BMW, Chrysler, Ford, Honda, Mazda, Nissan, and Toyota that they were conducting limited regional recalls to address a possible safety defect involving Takata brand air bag inflators.[35]

In May 2014, General Motors expanded their earlier recall of their 2012 Chevrolet Cruze sedan and other models because of an electrical problem with the Takata airbags. The recall also included the Buick Verano, the Chevrolet Sonic and the Chevrolet Camaro.[36]

On June 25, 2014, General Motors told their North American dealers to stop selling their 2013 and 2014 model Chevrolet Cruze sedans. GM stated, "Certain vehicles may be equipped with a suspect driver's air bag inflator module that may have been assembled with an incorrect part." The airbags involved were made by Takata Corporation.[36] On June 11, 2014, Toyota recalled 2.3 million vehicles, many for the second time.[12]

On July 17, 2015, Ferrari issued a recall for their lineup from the 2014-15 model years due to the driver's side airbags being improperly installed and the leather covering them improperly glued.[37] This was discovered when the company was conducting tests on a 458 Italia and the airbags would deploy at a rotated orientation, potentially causing injuries.[38]

Takata claims that the issue itself has only been shown to affect vehicles in hot and humid locations. However, all potentially affected vehicles have been recalled as a precaution. No evidence of the issue has been seen in the UK and Europe.

Nearly all reported injuries (both fatal and minor) had been recorded in Honda vehicles, something which is undergoing investigation. Ford added certain models to the list after the 10th death occurred when the airbag in a 2006 Ford Ranger pickup driven by a Georgia man ruptured violently in South Carolina, in late December 2015.[39]

As of December 9, 2016, car manufacturers affected by this recall include Acura, Audi, BMW, Cadillac, Chevrolet, Chrysler, Daimler Trucks North America, Daimler Vans USA LLC, Dodge/Ram, Ferrari, Fisker, Ford, GMC, Honda, Infiniti, Jaguar, Jeep, Land Rover, Lexus, Lincoln, Mazda, McLaren, Mercedes-Benz, Mercury, Mitsubishi, Nissan, Pontiac, Saab, Saturn, Scion, Subaru, Tesla, Toyota, and Volkswagen.[40]

Bankruptcy

On June 25, 2017, Takata filed for Chapter 11 bankruptcy in the United States and filed for bankruptcy protection in Japan, owing more in compensation than is possible for its survival. The surviving assets are to be sold to its largest competitor, Chinese owned and U.S. (Michigan) based Key Safety Systems, for about $1.6 billion.[41][42][43] On April 11, 2018, following the completion of Key Safety System's acquisition of Takata, the company announced that the company would be renamed to Joyson Safety Systems, and continue to operate in Michigan as Key Safety Systems had.[44]

See also

Note

  1. ^ Car owners potentially affected by the recall should check the NHTSA website for important information.

References

  1. ^ "Takata Annual Report 2016" (PDF). Takata Corporation. Archived from the original (PDF) on June 26, 2017. Retrieved November 1, 2017. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  2. ^ "Corporate Summary". Takata Corporation. Archived from the original on December 9, 2015. Retrieved December 22, 2015. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  3. ^ "Company Profile". The Wall Street Journal. Dow Jones & Company. Retrieved December 22, 2015.
  4. ^ Anghel, Alexandru (December 10, 2009). "Takata Petri hires 1,000 people in half a year in Arad and Sibiu". Ziarul Financiar. Retrieved May 25, 2015.
  5. ^ "Events leading to air bag maker Takata's bankruptcy filing". Washington Post (Associated Press). June 26, 2017.
  6. ^ "Action # EA15-001" (March 2017). "Defect Investigations and recalls" (PDF). Department of Transportation. NHTSA. Retrieved June 29, 2017.{{cite web}}: CS1 maint: numeric names: authors list (link)
  7. ^ "Takata, brought down by airbag crisis, files for bankruptcy". CNN. 25 June 2017.
  8. ^ Template:Reference Needed
  9. ^ "History｜About Takata｜TAKATA". www.takata.com. Archived from the original on 2017-12-01. Retrieved 2018-01-29. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  10. ^ History Archived 2017-12-01 at the Wayback Machine, Takata Corporation website.
  11. ^ "Takata Seat Belt Buckle". Center for Auto Safety. Retrieved October 22, 2014.
  12. ^ a b c d e f g h Tabuchi, Hiroko; Jensen, Christopher. "Now the Air Bags Are Faulty, Too". The New York Times. Retrieved June 25, 2014.
  13. ^ "Honda, Government Confirm 8th Death From Takata Air Bags". New York Times. June 19, 2015.
  14. ^ "Takata's Airbag Recall a Result of Converging Forces". New York Times. May 20, 2015. ... exploding airbags that have been linked to nine deaths and more than 130 injuries
  15. ^ "New Recall by Honda After Death in Malaysia Is Tied to Takata Airbag". New York Times. November 13, 2014.
  16. ^ "Faulty Takata air bag kills 6th person in Malaysia". Associated Press. January 30, 2018.
  17. ^ "Defect Information Report, Certain Air Bag Inflators Used as Original Equipment (Takata report sent to NHTSA, April 2013)" (PDF). Archived from the original (PDF) on 2014-11-06. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  18. ^ "Global｜Locations｜ABOUT TAKATA｜TAKATA". Takata Corporation. Archived from the original on February 15, 2015. Retrieved December 24, 2014. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  19. ^ "BMW says its Takata inflator work moving from Mexico to Germany". Automotive News. Retrieved December 24, 2014.
  20. ^ "Honda says Malaysian fatality linked to defective Takata airbag". paultan.org. Retrieved November 13, 2014.
  21. ^ "Honda and Takata sued over Malaysian airbag fatality". paultan.org. Retrieved May 5, 2015.
  22. ^ "Federal highway safety agency demands recall of cars with Takata air bags". Fox News. Retrieved November 19, 2014.
  23. ^ Isidore, Chris; Marsh, Rene (May 19, 2015). "Airbag maker Takata announces largest auto recall ever". CNNMoney. Retrieved May 21, 2015.
  24. ^ "Takata fined $70 million for defective airbags as recalls nearly double". LA Times. Retrieved November 3, 2015.
  25. ^ "Takata's Woes Are Complete: Now Toyota Has Dropped It - Fortune". Fortune.
  26. ^ "Japan air bag maker Takata reports $46 million loss". The Big Story.
  27. ^ "U.S. Department of Transportation expands and accelerates Takata air bag inflator recall to protect American drivers and passengers". NHTSA 13-16 (Wednesday May 4, 2016). Retrieved January 13, 2017. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  28. ^ Tabuchi, Hiroko (August 29, 2016). "Airbag Propellant Bound for Takata Factory Detonates en Route". NY Times. Retrieved August 30, 2016.
  29. ^ Tabuchi, Hiroko; Boudette, Neal E. (2 March 2018). "3 Takata Executives Face Criminal Charges Over Exploding Airbags". NYTimes.com.
  30. ^ "Takata to plead guilty, pay $1 billion U.S. penalty over air bag defect". Reuters. January 14, 2017. Retrieved January 14, 2017.
  31. ^ Gribbin, Caitlyn (28 February 2018). "Takata airbag concerns prompt compulsory recall of millions of Australian cars". Australian Broadcasting Corporation News. Retrieved 28 February 2018.
  32. ^ Chalmers, Stephanie (2 March 2018). "330,000 Holdens to be recalled over faulty airbags". Australian Broadcasting Corporation News.
  33. ^ "Government acts to recall vehicles with airbag safety issues". Beehive.govt.nz. Retrieved 4 April 2018.
  34. ^ "Govt recalls 50,000 cars because of airbag fault". The New Zealand Herald. Retrieved 4 April 2018.
  35. ^ Hammond, Lou Ann. "Which cars are affected by the Takata air bag recall? on Driving the Nation". drivingthenation.com. Retrieved November 10, 2014.
  36. ^ a b Woodall, Bernie; Lienert, Paul. "GM tells dealers to stop selling Cruze sedans with Takata air bags". MSN. Retrieved June 25, 2014.
  37. ^ Plungis, Jeff (July 17, 2015). "Ferrari Has An Air-Bag Problem: Leather Skins Glued on Wrong". Bloomberg Business. Retrieved July 18, 2015.
  38. ^ Hillen, Brittany (July 17, 2015). "Ferrari's having its own Takata airbag troubles". SlashGear. Retrieved July 18, 2015.
  39. ^ "Takata Airbag Flaw Linked to 10th Death".
  40. ^ "NHTSA | Recalls Spotlight: Takata Air Bag Recalls". www.safercar.gov. Retrieved March 8, 2017.
  41. ^ Soble, Jonathan (June 26, 2017). "Effects of Takata Bankruptcy to Extend Far and Wide". The New York Times. Retrieved June 26, 2017.
  42. ^ Soble, Jonathan (June 25, 2017). "Takata, Unable to Overcome Airbag Crisis, Files for Bankruptcy Protection". The New York Times. Retrieved June 26, 2017.
  43. ^ Snavely, Brent (June 26, 2017). "A look at Key Safety Systems, the Michigan company buying Takata". Detroit Free Press. Retrieved June 26, 2017.
  44. ^ Tajitsu, Naomi (April 11, 2018). "Key Safety Systems completes deal to acquire air-bag maker Takata". Reuters. Retrieved April 18, 2018.
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