U.S. Fines Takata Up To $200 Million For Deadly Airbags

(RTTNews) - Auto regulators have fined Takata, the maker of millions of faulty airbags, up to $200 million for the seven deaths and hundreds of injuries caused by its airbags.

Of the $200 million fine, Takata will pay $70 million in cash and will have to pay an additional $130 million if it fails to meet its commitments or if additional violations of the Safety Act are discovered.

The penalty was imposed by National Highway Traffic Safety Administration and is the largest civil penalty in NHTSA's history for violations of the Motor Vehicle Safety Act.

NHTSA has asked Takata to prioritize recalls so the greatest safety risks are addressed first and set deadlines for future recalls of other Takata inflators that use a suspect propellant unless they are proved to be safe.

Takata has been ordered to 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 7 deaths and nearly 100 injuries in the United States.

"For years, Takata has built and sold defective products, refused to acknowledge the defect, and failed to provide full information to NHTSA, its customers, or the public," said Transportation Secretary Anthony Foxx. "The result of that delay and denial has harmed scores of consumers and caused the largest, most complex safety recall in history. Today's actions represent aggressive use of NHTSA's authority to clean up these problems and protect public safety."