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WSJ investigation reveals Takata may have hidden testing failures

We're not sure how much more Takata can get wrong concerning its airbag fiasco. The Wall Street Journal says it reviewed internal documents submitted during litigation that reveal US engineers had concerns about altered test data for at least a decade, from 2000 to 2010. This comes after Taktata's largest customer, Honda, stopped doing business with the company, publicly calling Takata out for "misrepresented and manipulated test data." On top of that, the National Highway Traffic Safety Administration hit the Japanese company with an open-ended fine of $70 million. Ford took away its business, as have Toyota and Mazda. The latest recall tall has surpassed 19 million vehicles in the US alone. The in-house memos show US employees complaining among themselves that their Japanese equivalents were burying validation test failures and changing the results of validation tests. Such tests are conducted to show automakers that Takata products met specification, and employees specifically cite Honda as the recipient of those edited or redacted reports. One US engineer wrote that the "prettying up" of data "confounded my engineers," and "has gone beyond all reasonable bounds and now most likely constitutes fraud." The engineer apparently said his team made sure that the products were up to spec by using alternative data. Takata said the issues the Journal article covers don't have anything to do with the exploding airbags, and that in one case the problem with the airbag inflator was resolved, and in another case the problem airbag inflators didn't reach production. Takata admitted to the Journal that there have been past instances of "selective, incomplete or inaccurate data" in customer validation reports and apologized, laying the situation at the feet of employees trying to meet production deadlines. News Source: Wall Street JournalImage Credit: KAZUHIRO NOGI/AFP/Getty Images Government/Legal Recalls Honda Safety

Child cobalt miners: Automakers pledge ethical minerals sourcing for EVs

BERLIN - Leading carmakers including Volkswagen and Toyota pledged on Wednesday to uphold ethical and socially responsible standards in their purchases of minerals for an expected boom in electric vehicle production. Demand for minerals such as cobalt, graphite and lithium is forecast to soar in the coming years as governments crack down on vehicle pollution and carmakers step up their investments in electric models. To cover its plans for more than 80 new models by 2025, Volkswagen alone is looking for partners in China, Europe and North America to provide battery cells and related technology worth more than 50 billion euros ($59 billion). Talks with major cobalt producers, including Glencore, at VW's Wolfsburg headquarters last week ended without a deal. More than half of the world's cobalt comes from the Democratic Republic of Congo, a country racked by political instability and legal opacity, and where child labor is used in mines. On Wednesday, a group of 10 leading passenger-car and truck manufacturers announced an initiative to jointly identify and address ethical, environmental, human and labor rights issues in raw materials sourcing. The partnership dubbed "Drive Sustainability" consists of VW, Toyota Motor Europe, Ford, Daimler, BMW, Honda, Jaguar Land Rover, Volvo Cars and truckmakers Scania and Volvo. The alliance "will assess the risks posed by the top raw materials (such as mica, cobalt, rubber and leather) in the automotive sector," said Stefan Crets of the CSR Europe business network. "This will allow Drive Sustainability to identify the most impactful activities to pursue" to address issues within the supply chain.Reporting by Andreas Cremer.Related Video: Image Credit: Michael Robinson Chavez/The Washington Post via Getty Images Green BMW Ford Honda Jaguar Land Rover Mercedes-Benz Automakers Toyota Volkswagen Volvo Green Automakers Green Culture Electric Scania ethics mining

Hurricane Sandy cost automakers 15,000 vehicles, may have ruined up to 200k

Hurricane Sandy was the largest Atlantic storm in US history, and its total economic impact is just now coming into view. According to Automotive News, Toyota, Chrysler, Nissan and Honda are set to scrap around 15,000 new vehicles ruined by the storm. Nissan alone accounts for about 40 percent of those, with 6,000 Nissan and Infiniti models deeded "un-saleable" due to damage. The company saw 56 dealerships shuttered due to the storm, but 51 of those have since reopened.
Toyota, meanwhile, had some 4,000 vehicles at its Newark port facility, and of those, 3,000 may be scrapped. An additional 825 were dealer inventory when they were ruined. Honda and Acura dealers are reportedly sending 3,440 vehicles to the salvage yard. By comparison, Chrysler weathered the storm fairly well with 825 units destroyed, while Hyundai suffered only 400 lost units and Kia scrapped around 200.
As you may recall, Fisker also suffered some losses, and Automotive News reports the manufacturer saw 320 Karma models damaged beyond repair. Ford and General Motors have yet to come up with estimates, and no automaker has commented on the full cost of replacing the vehicles.