Takata Didn’t Tell U.S. About Incident

Takata Didn't Tell U.S. About Incident Japanese automotive supplier Takata Corp. failed to alert U.S. regulators to a 2003 rupture of an air bag in Switzerland, despite second thoughts from an engineer, according to an internal report detailing exploding safety devices that resulted in record recalls and numerous deaths and injuries.

Source: Source: WSJ - Mike Spector | Published on September 27, 2016

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The rupture occurred in a vehicle in May 2003, and Takata attributed the incident to overloading air-bag inflater propellant, according to the report from law firm Dechert LLP, which represents the parts supplier. The company made manufacturing changes the same year to address the problem.

The Dechert report was released on Friday by U.S. authorities.

In a February 2010 response to queries from federal highway safety regulators about certain air-bag recalls, Takata failed to mention the Switzerland rupture, according to the report.

A company engineer in the U.S. later questioned that omission, the report said. Takata's response claimed there were no reported malfunctions of relevant air-bag inflaters, adding the company was convinced inflaters sold to auto makers weren't defective.

The uncertain engineer later concluded that response was accurate because the inflater involved in the Switzerland rupture wasn't among those manufactured during the production period Takata's response addressed.

The Switzerland rupture was detailed in the internal company report released by federal auto-safety regulators as part of their continuing investigation of Takata air bags. It detailed previously reported incidents of air-bag ruptures and misleading testing reports Takata provided to auto makers. Problems omitted from those testing reports weren't linked to later air-bag ruptures, the Dechert report said.

A Takata spokesman on Friday said the company extends "sincerest apologies to those who have been affected by the inflater failures" and has "previously acknowledged and deeply regrets" misleading testing reports. The spokesman declined to comment on the Swiss rupture.

Takata air-bag ruptures have been linked to 14 deaths and more than 100 injuries globally, leading to the largest automotive recall to date. Nearly 70 million air bags that risk spraying shrapnel in vehicle cabins are being recalled in the U.S. alone.

The internal report and other documents regulators released on Friday point to prolonged exposure to heat and humidity and the age of air-bag inflaters as root causes for ruptures, conclusions previously reached by the company, auto makers and government officials.

The company is seeking a cash infusion from private-equity firms or automotive suppliers amid mounting recall costs. It remains under investigation by the U.S. Justice Department.

The National Highway Traffic Safety Administration fined Takata $70 million last November for failing to alert regulators to defective air bags in a timely manner as required under federal law. That settlement also required the company to produce the internal report released on Friday.