💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Australian regulator investigating Takata airbag recall after death

Published 07/24/2017, 02:13 AM
© Reuters. FILE PHOTO: A woman stands next to a logo of Takata Corp at a showroom for vehicles in Tokyo

By Colin Packham

SYDNEY (Reuters) - Australia's consumer watchdog said on Monday it was investigating the recall of Takata Corp vehicle airbags, a day after police said the death of man in a Sydney car crash was likely due to a faulty airbag.

The Australian Competition and Consumer Commission (ACCC) said it was seeking information from both the government department responsible for vehicle safety and car manufacturers on what information was being given to consumers about the recall.

Takata shares slid by a fifth in Monday trade on the news.

The death of the man in Sydney this month, which involved a Honda CRV fitted with Takata-manufactured airbags, may be the 18th linked to faulty airbags by the Japanese auto parts maker and the first such death in Australia.

Investigators said the man was struck in the neck by a small fragment of an airbag that was subject to a worldwide recall. Takata's airbag inflators can degrade over time, spraying metal shards around a vehicle when the airbag is deployed.

Honda spokesman Neil McDonald said the accident was still under investigation and the company was not able to say whether the airbag in question was one that had never been replaced or one that had already been replaced as part of recall efforts.

Takata did not immediately respond to a request for comment.

ACCC Chairman Rod Sims told the Australian Broadcasting Corporation on Monday that some vehicles' airbags were being replaced with ones that may in turn need to be replaced again in six years' time. The water-absorbing chemical designed to address the original problem can also degrade over time, he said.

Sims said 36 percent of affected Australian vehicles had potentially faulty airbags replaced and urged manufacturers to accelerate the speed of upgrades.

"The fact is now manufacturers have had long enough to locate the airbags and get that sorted," said Sims.

Manufacturers including BMW, Toyota, Mazda and Subaru, have replaced some airbags with a temporary fix, the ACCC said.

More than 2.3 million vehicles in Australia have been targeted in a recall since 2009, the watchdog said.

Takata has filed for bankruptcy protection in the United States and Japan, and said last month it had agreed for its viable operations to be acquired for $1.6 billion by Chinese-owned U.S.-based Key Safety Systems.

© Reuters. FILE PHOTO: A woman stands next to a logo of Takata Corp at a showroom for vehicles in Tokyo

Takata's shares were down 8 yen or 22 percent in late afternoon trade.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.