The Millions of Airbags Takata Replaced Could Still Be Extremely Dangerous

Matt Posky
by Matt Posky

Takata, the parts supplier that furnished automakers with millions of extremely dangerous airbag inflators, was forced to issue another recall last week. Considering the hundreds of millions of units already recalled by the company, another 2.7 million is a drop in the bucket. But there’s a slight problem, as these newly recalled inflators are devices that have already been replaced.

In 2015, regulators specified Takata had until the end of 2019 to ensure its replacement airbag inflators were safe. With the “fixed” units now under scrutiny, automakers may be liable for the supplier’s wrongdoing as the millions upon millions of recalled inflators would need to be replaced for a second time. The current recall was prompted after the U.S. National Highway Traffic Safety Administration found the drying agent added specifically to combat the moisture that degrades the ammonium nitrate compound wasn’t effective.

“Absent proof that the other desiccated inflators are safe, they will also be subject to recall,” the NHTSA said in a statement last week.

Takata stated it has produced roughly 100 million replacement inflators containing drying agents. The 2.7 million recalled last week used calcium sulfate while the rest used zeolite.

According to Reuters, automakers have been burdened with a significant portion of the estimated $10 billion cost of replacing the faulty inflators. They’d also be liable in the event of NHTSA deciding Takata failed to adequately address the safety issues with the remaining recalled units. At this point, there isn’t much more that can be done with the Japanese supplier. Takata filed for bankruptcy in June and has since been purchased by Michigan-based Key Safety Systems for $1.6 billion.

“The automakers … and Takata — they all know that this is a future issue,” said Scott Upham, chief executive at Valient Market Research, whose clients consist of several auto parts suppliers. “But I think everybody is concerned about the near-term issues, and the financial arrangements of the bankruptcy.”

Obviously, the most pressing short-term danger consists of additional harm to motorists. So far, the faulty inflators have contributed to at least 17 known fatalities and countless injuries.

Takata is the only airbag manufacturer to use ammonium nitrate as a propellant in its systems. It’s unlikely that will ever change, due to the compound’s volatile tendencies. Takata’s inflators can rupture the airbag, spraying vehicle occupants with shrapnel, after the compound is exposed to moisture or high temperatures for prolonged periods. While the drying agents used appear to have stabilized the propellant somewhat, fears remain that it’s simply too volatile to be used in inflators and will require removal if the NHTSA isn’t satisfied.

Honda is likely to be the company most hurt by a second round of recalls, since it used more of Takata’s inflators than any competitor. But it won’t be the only one to suffer. Toyota, Nissan, General Motors, Ford, Fiat Chrysler, Mazda, Subaru, Jaguar Land Rover, Mitsubishi, Tesla, Fisker, Ferrari, McLaren, BMW, Mercedes-Benz, and Volkswagen Group have also all been affected by the recall.

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • CarPerson CarPerson on Jul 20, 2017

    Do a Google search on "Bloomberg Takata Moses Lake" It mentions the company. Go back into their history.

  • CarPerson CarPerson on Jul 20, 2017

    Do a Google search on “Bloomberg Takata Moses Lake” It mentions the company. Go back into their history.

  • Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
  • Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?
  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
  • Lynn Joiner Just put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
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