Honda bails on Takata, which is hit with record fine
As its largest customer says it will go elsewhere for airbags, Takata’s stock plunges. The civil penalty could be as much as $200 million.
The past few months have been a nightmare for the auto industry, and the hits keep coming.
The National Highway Traffic Safety Administration fined airbag supplier Takata $70 million on Tuesday, according to The New York Times.
The consent order imposes a record civil penalty of $200 million, a NHTSA press release states. Takata must pay the remaining $130 million if it fails to meet the consent order’s terms.
Takata must “phase out the manufacture and sale of inflators that use phase-stabilized ammonium nitrate propellant, which is believed to be a factor in explosive ruptures that have caused seven deaths and nearly 100 injuries in the United States,” the release states.
The Washington Post reports this response from Takata:
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