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with new takata air bag recalls, automakers may face more liabilities

by:Sunshinepack     2019-08-28
TOKYO (Reuters)-
Takata 7312
Last month\'s filing for bankruptcy was to draw a line on the biggest safety recall in the auto industry, but more air bag inflator recalls announced last week suggest automakers may face new debt in the future. In late-2015, U. S.
It was not until the end of 2019 that the regulator provided Takata with evidence of the replacement of the airbag inflator-
It adds a desiccant to fight against moisture that causes ammonium nitrate compounds in the inflator and produces potentially fatal results --are also safe.
If Takada fails the test
Some industry consultants, explosives experts and former employees questioned whether such a workaround would ensure long-term safety. term -
The replacement inflator itself, which is currently being installed at about 100 million, may need to be replaced.
\"If there is no evidence of the safety of other dry inflators, they will also be recalled,\" the United StatesS.
State Administration of highway traffic safety (NHTSA)
Said in a statement last week.
The agency declined to comment on the risk of a possible recall of additional inflators. (
\"Airbag deployment-tmsnrt. rs/2teGovm)
NHTSA announced last Tuesday that Takata\'s new test prompted the Japanese parts company to announce 2.
7 million of the new airbag inflators are defective, which raises questions about the risk of replacing the airbag, as moisture will still penetrate into the propellant of some inflators.
So far, customers of Takata automakers have undertaken most of the cost of replacing the faulty bag inflator, estimated at $10 billion, and if Takata fails to demonstrate that the desiccant solution is adequate, future liabilities may be affected.
Last week\'s recall was the first one involving the use of desiccant for Takada bag inflators.
Nearly 20 automakers have been affected by the airbag recall, and some are still using Takata inflators for replacement during the recall.
Automakers including Honda Motor Corp. 7267. T)
Toyota Motor Corporation (7203. T)
Nissan Motor Corporation (7201. T)
It has been said that they will stop using Takata inflators in new contracts for future models.
\"If NHTSA raises security issues in the future (
Dry inflator)
Hitoshi Kawaguchi, Nissan\'s chief sustainability officer, told Reuters: \"Of course we will abide by their orders . \".
\"At the moment, our focus is on providing alternative inflators for our customers.
Toyota said it is \"working closely with all stakeholders including Takata, other suppliers and related agencies to assess any potential impact of the recall issue and take corresponding actions \".
Honda, Takada\'s biggest customer, declined to comment.
\"Car manufacturers. . . and Takata -
They all know that this is a future issue, \"said Scott Upham, chief executive of validate Market Research, whose customers include auto parts suppliers.
\"But I think everyone is watching.
Term issues and financial arrangements for bankruptcy.
Takada said it has produced about 100 million replacement inflators containing desiccant: 2.
7 million of last week\'s recall used calcium carbonate, and the rest contained zeolite.
\"We still need to prove the safety of our dry inflators, but we believe that people who use the zeolite are safer than those who use calcium carbonate,\" said spokesman Hishikawa Toyohiro . \".
The company declined to comment further on the testing process or the NHTSA deadline.
Takata is the only airbag manufacturer in the world that uses ammonium nitrate as propellant in inflators.
This compound is susceptible to high temperature and humidity, and may cause an explosion, thus spewing shrapnel in the car.
The defect killed at least 17 people, most of them in the United States.
The new inflator with desiccant added has nothing to do with any death or injury, but the problem with the original inflator usually takes five years or more to appear.
Horichi Hori, who is responsible for automotive safety components at the Japan explosives Association, said adding desiccant can reduce but not eliminate uncontrolled explosion risks.
If the desiccant can prevent all moisture from reaching the inflator propellant, \"then it is possible for the inflator to be used safely,\" he said . \".
\"Otherwise, alternatives should be considered.
However, industry consultant Upham predicted that the recalled parts will eventually be recalled --
Because, fundamentally, ammonium nitrate is too unstable.
Customers of Takata automakers may have to pay again because Takata is unlikely to pay the cost.
\"Automakers hope and pray that the desiccant will solve this problem. . . (but)
It may come back and bite them, \"said upburn.
Former Takata employees involved in the manufacture of inflators said desiccant could win time for Takata.
One told Reuters last year that by adding desiccant, \"You\'re just extending the fuse, not correcting the problem.
\"The key security system, the United StatesS. -
Basic parts suppliers of Joyson Electronics company in Ningbo, China (600699. SS)
Has agreed to buy good assets such as Takata\'s seat belt and steering wheel for $1. 6 billion.
After the plan is to produce alternative inflators for ongoing recalls, Takata\'s airbag business will be closed by March 2020.
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