Reports of Takata coverup 'require a criminal investigation,' lawmakers say

November 07, 2014 12:00 AM

Reuters

WASHINGTON -- Lawmakers have called for a U.S. criminal probe into Japanese auto supplier Takata Corp. following a report that the company destroyed results of airbag tests conducted in secret in 2004.

In 2004, Takata tested some 50 airbag inflators in secret after a Honda Accord’s inflator exploded in an accident, injuring the driver, the New York Times reported late Thursday. Instead of alerting regulators about the risks posed by the inflators, Takata executives ordered technicians to destroy the test results, the paper said, citing two former Takata employees.

“Reports that Takata concealed and destroyed test results revealing fatal air bag defects, along with other evidence that the company was aware of these deadly problems, clearly require a criminal investigation by the Department of Justice,” Sens. Richard Blumenthal, D-Conn., and Edward Markey, D-Mass., said in a statement.

“If the reports are true, the company must be held accountable for the horrific deaths and injuries that its wrongdoing caused. These allegations are credible and shocking -- plainly warranting a prompt and aggressive criminal probe.”

Takata, in a statement released today, called the Times story "fundamentally inaccurate." (See full statement below.)

Nearly 8 million vehicles from 10 automakers, including more than 5 million from Honda, have been recalled since 2013 through national and regional actions for the potentially deadly Takata airbag inflators, which can explode after an accident and spray vehicle occupants with shrapnel-like shards of plastic and metal.

“This is a serious allegation about actions taken by Takata. It is our intention to determine whether anyone at Honda has any evidence that these claims are credible.” Honda spokesman Chris Martin told the Times.

Blumenthal and Markey have been among the most vocal advocates for auto safety on Capitol Hill this year. Last month, the duo implored Transportation Secretary Anthony Foxx to have the National Highway Traffic Safety Administration expand the regional recalls, which have been limited to high-humidity states, to full nationwide recalls. They have also introduced bills to give NHTSA more power and make defect reports submitted to the government more transparent.

U.S. Sen. Claire McCaskill, D-Mo., another outspoken automotive safety advocate and chairman of the Senate’s panel on consumer protection, also called for action.

“If these reports are true, they show a company more concerned with profits than the lives of consumers -- a company that needs to be held fully accountable, not just with financial penalties, but also with criminal charges," McCaskill said in a statement. "I trust that safety regulators and Justice Department officials are looking closely at these accusations and considering every tool available under the law."

U.S. Rep. Fred Upton, R-Mich., the chairman of the House Energy and Commerce committee that authored a scathing report of NHTSA’s handling of the GM ignition switch recalls, called for answers about the origins of the mushrooming safety crisis.

"Our first and most urgent priority is ensuring that drivers and their families are safe on the road. As the recalls continue and the faulty airbags are replaced, we also need answers about when the danger was discovered and whether it was concealed from regulators, or not adequately understood once the regulators became aware," Upton said in a statement.

"A consistent focus for the committee has been information sharing -- making sure that as soon as a danger is identified, the regulators are notified and a plan is put into place to address it. Auto safety will continue to be a priority for this committee for the rest of this Congress and well into next year."

NHTSA response

Meanwhile, NHTSA is encouraging current and former employees to come forward with additional information that may aid the agency’s ongoing investigations into Takata and Honda.

“Any additional information that may aid our ongoing investigation is welcome and we encourage current or former employees to please contact NHTSA directly. Claims such as these have raised additional concerns about Takata’s handling of airbag issues and are one of the reasons we're compelling them to produce documents and answer questions,” NHTSA said in a statement.

The agency has sent subpoenas demanding that the companies answer questions under oath and produce documents related to the defective airbags. The agency’s subpoena, known as a “special order” in NHTSA terminology, to Honda seeks information dating back to 1998 while its Takata order covers back to 2000, according to the agency.

NHTSA is also investigating how Honda reports deaths and injuries that may be related to vehicle defects in its quarterly early warning reports to regulators. That investigation came after the Center for Auto Safety, a watchdog group, accused Honda of failing to report two accidents involving a death or injury caused by exploding Takata airbags last month.

“We will leave no stone unturned as we review everything we have and new information we receive,” NHTSA said.

Takata's statement in response to Times' story:

We regret that Al Bernat, a Senior Vice President of Quality Assurance at the Takata Corporation, has had his integrity unfairly questioned on the basis of two anonymous sources in a New York Times November 6, 2014 article by reporter Hiroko Tabuchi. Despite the New York Times’ claim that Mr. Bernat is no longer employed by Takata, he remains an important member of our engineering team. Moreover, while the Company will not comment on the details of anonymous allegations, the allegations contained in the article are fundamentally inaccurate, including those made concerning Mr. Bernat.

Mr. Bernat has been with Takata for over 23 years and has been active in the automotive industry for 44 years. For three decades Mr. Bernat has served as an executive in the field of automotive safety and has been a senior member of the Automotive Safety Council (ASC). Mr. Bernat is recognized as an authority in automotive safety and has been a member of the Industry Blue Ribbon Committee made up of experts in safety systems focusing on impaired driver technologies.

Takata takes very seriously the accusations made in this article and we are cooperating and participating fully with the government investigation now underway. The company continues to work closely with automakers and federal regulators to address the issues related to airbags and to provide the replacements needed.

For over 80 years, Takata has manufactured products aimed at keeping people safe. Our innovations in automotive safety are responsible for saving thousands of lives each year. Our company is determined to correct any product issues that have arisen and to continue improving our technologies to keep the driving and riding public safe.