Company responsible for exploding airbags is close to settlement with federal prosecutors in the U.S.

Auto-parts maker Takata is reported to be nearing a settlement for supplying allegedly dangerous airbags that can explode and shoot shards of metal in to the vehicle cabin.

It has been revealed that Takata had been making the potentially defective airbags since the early 2000s, and any attempt to unearth their wrong doings have been covered up or misrepresented, according to media sources.

Some 19 automakers have recalled 42 million cars for repair work. It is unsure for now whether car owners will have to partially pay for the fix, or if Takata will have to pay the full fee. With their expected penalty fine being potentially as huge as $1 billion, this whole fiasco may put the company under serious financial pressure.

Takata are apparently in a lot of financial trouble, with recent fines a year ago mounting to $130 million. However, it doesn’t seem that Takata handles financial strain very well, as one former engineer who worked at the company said that, due to money issues, they started using a cheaper but more volatile propellant in their airbag inflators in the early 2000s.

The propellant uses a controversial chemical called Ammonium Nitrate. Auto Liv previously tested it in the 1990s and concluded it was much too dangerous to be used in airbags. Takata, however, went ahead and used it, and even supplied their biggest client, Honda, with the reportedly dangerous airbags.

Justice authorities are looking into allegations that Takata have been misleading consumers and hiding information. Researchers who analysed the compound doubted it was safe to use, and Takata allegedly hid this information.

A New York Times article reported that the airbag maker were apparently brazen about their deceptive behaviour when emails were unearthed showing correspondence between the Japanese and US sides talking about manipulating data.

“Happy manipulating!!!” emailed Bob Schubert, a Takata airbag engineer, according to the Times. The report also goes on to say that he made suggestions to change the colour and visual graphs to divert attention from the adverse data by “dress[ing] it up”.

Big market share

Takata is one of the 3 major airbag suppliers in the world with a 25-30% control of the market. With their global reach, they have potentially deceived millions of companies and vehicle owners, and potentially put drivers at risk. It’s expected that Takata will be hit by many compensation claims for their alleged wrong doings. The company’s future will be uncertain as it could be faced with heavy fines.