http://www.options-trading-education.com/24148/who-will-be-hurt-with-the-takata-airbag-recall/
Who Will Be Hurt with the Takata Airbag Recall?
The National Highway Traffic Safety Administration has made an about face and is directing automakers to recall vehicles with driver side airbags made by Japanese supplier Takata, according to the New York Times. Takata airbag defects have been responsible for deaths in several instances.
In a significant shift, federal safety regulators on Tuesday called on automakers to conduct a nationwide recall of vehicles that contain driver’s-side airbags made by the Japanese supplier Takata.
The nationwide move, urged by the National Highway Traffic Safety Administration, would expand a recall that has been mostly limited to two states and two territories associated with high humidity. If automakers do not agree to expand the recall, the agency said, it will “use the full extent of its statutory powers” to compel automakers to do so.
The agency said it had yet to make a detailed list of the models or model years affected. But the expansions will affect millions of vehicles made by Ford, Honda, Chrysler, Mazda and BMW, mostly from model years 2008 or earlier, said David J. Friedman, the agency’s deputy administrator, on a conference call with reporters.
Millions of cars have already been recalled. The issue is that in humid conditions the airbags are prone to explode when activated essentially sending shrapnel into the driver’s body. As the airbag recall widens things are not good for Takata. But who else will be hurt with the Takata airbag recall? According to the New York Times article automakers BMW, Chrysler, Ford, Honda and Mazda are included.
How Fast Can This Get Fixed?
According to Automotive News there is an industry wide airbag inflator shortage. Auto
dealers could not fix all of the recalled Takata airbags right away even if every car owner came in next week.
Honda and other automakers that have recalled vehicles equipped with Takata airbags are trapped in a nasty dilemma.
Even if automakers fend off federal regulators’ request for a nationwide recall of driver-side airbags, it could take two years or so for Takata to produce enough replacement airbag inflators.
And it’s unclear whether other suppliers can help Takata produce more inflators. Several automakers have warned the National Highway Traffic Safety Administration that other suppliers’ inflators would require lengthy testing.
By January, Takata hopes to boost monthly output of replacement inflators to 450,000 from 300,000, a rate that would require about two years to supply 10 million vehicles recalled in the United States. Many more inflators will be needed if regulators order automakers to expand their regional recalls nationwide.
The issue of timing is a real problem for car owners and dealers. Will owners be forced to trade in their cars to get a safe air bag?
2. The National Highway Traffic Safety
Administration has made an about face
and is directing automakers to recall
vehicles with driver side airbags made by
Japanese supplier Takata, according to
the New York Times.
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5. In a significant shift, federal safety
regulators on Tuesday called on
automakers to conduct a nationwide
recall of vehicles that contain driver’s-side
airbags made by the Japanese supplier
Takata.
6. The nationwide move, urged by the
National Highway Traffic Safety
Administration, would expand a recall
that has been mostly limited to two states
and two territories associated with high
humidity.
7. If automakers do not agree to expand the
recall, the agency said, it will “use the full
extent of its statutory powers” to compel
automakers to do so.
8. The agency said it had yet to make a
detailed list of the models or model years
affected.
9. But the expansions will affect millions of
vehicles made by Ford, Honda, Chrysler,
Mazda and BMW, mostly from model
years 2008 or earlier, said David J.
Friedman, the agency’s deputy
administrator, on a conference call with
reporters.
17. Auto dealers could not fix all of the
recalled Takata airbags right away even
if every car owner came in next week.
18. Honda and other automakers that have
recalled vehicles equipped with Takata
airbags are trapped in a nasty dilemma.
19. Even if automakers fend off federal
regulators’ request for a nationwide recall
of driver-side airbags, it could take two
years or so for Takata to produce enough
replacement airbag inflators.
20. And it’s unclear whether other suppliers
can help Takata produce more inflators.
21. Several automakers have warned the
National Highway Traffic Safety
Administration that other suppliers’
inflators would require lengthy testing.
22. By January, Takata hopes to boost
monthly output of replacement inflators
to 450,000 from 300,000, a rate that
would require about two years to supply
10 million vehicles recalled in the United
States.
23. Many more inflators will be needed if
regulators order automakers to expand
their regional recalls nationwide.
24. The issue of timing is a real problem for
car owners and dealers.
25. Will owners be forced to trade in their
cars to get a safe air bag?
26. How much will the value of their cars be
lowered because of a potentially
defective air bag?
27. And how much liability goes to the auto
manufacturers?
28. That is our question about who will be
hurt with the Takata airbag recall?
