Takata admits guilt. But who pays for cars with unsafe airbags?

Thanks to enforcement by the U.S. Department of Justice the Department of Transportation, and the FBI, airbag manufacturer Takata plead guilty to wire fraud and agreed to pay a total of $1 billion in criminal penalties. Why? Because the company had committed fraud, concealing dangerous defects in its airbag inflators, which have caused at least 11 deaths and approximately 180 injuries, including blindness and brain injuries, in the U.S.

According to the law enforcement agencies, Takata executives engaged in a cover-up that lasted for at least 15 years.

According to the DOJ, “Under the terms of the agreement, Takata will pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine. Two restitution funds will be established: a $125 million fund for individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds.”

Sooo — if auto manufacturers are being compensated for losses associated with Takata’s fraud, why are they and their franchised dealers still selling cars with unsafe, unrepaired Takata airbags, which are being passed onto consumers at dealerships such as CarMax?

CarMax is notorious for selling cars with unrepaired safety recalls, including defective Takata airbags that are being recalled.  CarMax advertises that all its cars must pass a “rigorous inspection” in order to qualify to be sold as “CarMax Quality Certified” vehicles. But CarMax fails to get the safety recalls repaired.  Consumers who buy cars with dangerously defective Takata airbags from CarMax and other unscrupulous auto dealers may not realize that there is no way they can get their cars repaired for a long time, due to severe shortages of replacement airbags.

Read more: U.S. Department of Justice: Takata Agrees to Pay $1 Billion in Criminal Penalties for Airbag Scheme

 

Autonomous cars cause confusion, pose hazards

Auto manufacturers are rushing to be the first to sell cars that are semi-autonomous. But they have failed to invest in adequate training for sales personnel who can explain the features — and their limitations.

So what can go wrong?  Here’s one example: According to a recent report in Automotive News,  “As Donna Lee approached the intersection of Roberts Drive and Spalding Drive in Sandy Springs, Ga., the salesman in the passenger seat told her not to hit the brakes, even though two cars were stopped and waiting at the red light ahead.

According to court documents, Lee and Mercedes salesman Desmond Domingo have similar accounts of what happened next on the evening of May 10, 2014. The Distronic semiautonomous system in the Mercedes-Benz GL450, which Domingo believed would bring the car to a full stop, did not kick in as he expected. The Mercedes slammed into the car in front of it at around 40 mph, causing a chain reaction of crashes that left a 16-year-old driver with a concussion and significant damage to the cars involved.”

CARS has testified at forums regarding autonomous vehicles that they should not be offered for sale to the public until they are fully autonomous, and they have been proven safe through at least one year of real-life testing in all normal weather conditions, including heavy rain, fog, and snow. Otherwise, consumers who purchase the cars may end up stranded, or in collisions — particularly if they purchase the cars as used vehicles, and are not familiar with their limitations.

Read more:   Automotive News: Autonomous features ripe for misunderstanding

National Automobile Dealers Association in denial about safety

The President of the National Automobile Dealers Association, Colorado car dealer Jeff Carlson, claims that only 6% of recalled vehicles are “hazardous.” That means he thinks that cars like this one, that killed a 17-year-old Texas teenager, are NOT “hazardous.”

ABC News report: 17-year-old killed by exploding Takata air bag

Try telling that to her family.

That also means that he doesn’t consider any of these defects, which have killed and maimed many car drivers and their passengers, to be “hazardous”:

  • Stalling in traffic
  • Catching on fire
  • Faulty brakes
  • Steering loss
  • Seat belts that fail in a crash
  • Axles that break
  • Hoods that fly up while you’re driving in traffic
  • Sticking accelerator pedals
  • GM ignition switches that turn off and eliminate power steering and braking, and cause air bags to fail to deploy

Automotive News report: Carlson vows to press NADA’s fight against regulation

Bottom line: Carlson and NADA cannot be trusted to decide whether a car is safe to sell. When it comes to safety, they are absolutely clueless. And a real danger to American society.

GM “certified” cars face Federal scrutiny

The U.S. Federal Trade Commission has confirmed that it is investigating advertising of General Motors’ “certified” used cars, regarding their safety recall status. The FTC is the first federal agency to take action to protect the public from car dealers’ sales of unrepaired recalled used cars. CARS applauds the FTC for acting to police vehicle safety in the used car market, under existing laws.

According to the Detroit News, “GM said it was notified June 3 of the investigation by the FTC that concerned “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”

CARS and our consumer group allies have been urging the Federal Trade Commission to crack down on CarMax, over its sales of unsafe, recalled used cars. CarMax is the largest retailer of used cars in the U.S. CarMax advertises that all its vehicles must pass a rigorous “125 – point inspection” to qualify to be sold as “CarMax Quality Certified” vehicles.

However, CarMax openly admits that it knowingly and deliberately sells cars that are being recalled by the manufacturer because they have lethal safety defects. CarMax neglects to ensure that the cars are repaired and safe to drive, before offering them for sale. The CARS Foundation and CALPIRG Education Fund recently issued the report “CarMax Is Endangering Lives in California” about the unsafe, recalled cars CarMax offered for sale in Oxnard and South Sacramento, CA.

New York City’s Department of Consumer Affairs was the first local agency to crack down on car dealers’ sales of unsafe, recalled used cars, under a law in New York that requires dealers to certify that vehicles they offer for sale are roadworthy.

Read more: Detroit News: GM Faces FTC Investigation

 

Honda: “Oh, and by the way, this Honda’s air bags may explode in your face”

In case you thought that other auto manufacturers were smarter than GM, or at least capable of learning from GM’s mistakes, here’s a reality check:

Honda is now specifically allowing its dealers to sell unsafe, recalled used cars with faulty air bags that are prone to spewing metal fragments that become sometimes-lethal projectiles — as long as they get the used car buyer’s signature on a written “disclosure”  — which the dealer can hide in a stack of documents and slip in AFTER you have already agreed to buy the car, settled on a price, and spent 4 hours at the dealership.

Safety Research and Strategies writes about why cars equipped with  these defective air bags are finally being recalled — because of horrific incidents like these:

“In May 2009, 18-year-old Ashley Nicole Parham.of Oklahoma died in a 2001 Honda Accord, after her vehicle [collided with] another car in the school parking lot, tripping an explosion that sent a piece of metal right into her carotid artery.

In 2010, Kristy Williams, a Georgia college student, was stopped at a light, when her airbags deployed, expelling metal shards, which severed her neck and carotid artery and required two weeks in intensive care. Williams’ case against Honda was settled for an undisclosed sum.

On Christmas Eve, Guddi Rathore was at the wheel of her 2001 Honda Accord, when a U.S. postal service truck pulled out in front of her. The minor fender bender caused the airbag to explode. The metal shards severed the arteries in her neck, killing Rathore in front of her three young children, also occupants in the Accord.”

One of the complaints SRS documents, that was filed with the National Highway Traffic Safety Administration:

“Oncoming driver crossed center line making a left turn in front of Honda driver. Honda struck passenger side of turning vehicle. Both driver and passenger side airbags deployed. However, the diver side airbag inflator ruptured and propelled a one-inch piece of shrapnel into the driver’s right eye. Loss of sight and severe lacerations to nose requiring 100 stitches.”

Even if those disclosures would pass legal muster — and some legal experts think they may be worse than no disclosure at all — what sort of car dealer would deliberately sell their customers a car with an air bag that may explode in their face and blind or kill them?

Read more:

Automotive News: Honda pushes dealers for buyer’s signatures on air bag liability

Safety Research and Strategies: NHTSA finally gets curious about exploding air bags