The National Highway and Traffic Safety Administration (“NHTSA”)\u00a0has released a statement indicating that it has fined Japanese airbag manufacturer Takata $200 million for mishandling the recall of its airbag inflators, which\u00a0have been linked to at least seven deaths of Americans. On May 19, 2015, the United States Department of Transportation (“DOT”) issued a statement indicating that Takata had identified\u00a0a number of defects in some of its airbag inflators. According to reports, the affected inflators were constructed with a propellant that is subject to degrading over time, leading\u00a0to ruptures that can cause serious injury or even death.<\/p>\n
On June 5, 2015, the NHTSA initiated a formal administrative\u00a0proceeding against Takata, referred to as the Coordinated Remedy Program Proceeding. The purpose of this action was to determine whether the NHTSA should implement an accelerated remedy approach to addressing the millions of defective Takata airbag products\u00a0contained in American vehicles. The NHTSA has the authority to require vehicle manufacturers to accelerate repairs on recalled vehicles pursuant to the TREAD Act, passed in 2000. The acceleration can only be ordered when\u00a0the agency determines that there will be a risk of serious injury or death if the remedy process is not accelerated.<\/p>\n