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Honda ditching Takata for next Accord's airbags

Today brings unsurprising news that Honda will move away from Takata and source airbags for the next-generation Accord, among other models, from one of the embattled company's competitors. Both companies have been in headlines of late after the former recalled millions of vehicles that were fitted with the latter's airbag inflators, which had the unpleasant tendency to spew shrapnel at consumers. The move, as Reuters explains it, is particularly devastating for Takata. Honda is the company's largest customer, and the Accord represents its biggest product, accounting for over a quarter of the company's sales last year. It gets worse, though, as a confidential source with knowledge of the situation is reporting to Reuters that both the 2016 CR-V and Odyssey will source their airbags from Toyoda Gosei. If true, that'd mean that Takata will be losing out on more than half the cars Honda sells in the US market. At this point, Takata, Honda and Toyoda Gosei have all passed on opportunities to comment to Reuters.

Lawsuit reveals gruesome details of Takata airbag victim's death

The accident was minor. The aftermath was horrific. Carlos Solis was waiting to turn left into a Houston-area apartment complex on January 28 when oncoming traffic struck the front-left corner of his 2002 Honda Accord, pictured above. He was stopped, according to a police report of the accident. The other car traveled at under 30 miles per hour. He should have walked away from the fender-bender. Instead, the 35-year-old married man was killed when a defective airbag exploded and sent a large piece of metal shrapnel into his neck, his estate's lawyers allege in a lawsuit filed Thursday in Harris County, Texas. He bled to death while his younger brother and an 11-year-old cousin tried to save him. Solis is one of at least six motorists killed by defective airbags made by Takata, a global automotive supplier. He may also be a posthumous poster child for federal legislation introduced earlier this week that would ensure car owners receive more timely information about safety recalls. Currently, federal law does not require car dealers to tell prospective buyers about open recalls on used cars or whether defects have been repaired. Legislation introduced by Sen. Ed Markey (D-Mass.) and Sen. Richard Blumenthal (D-Conn.) wouldn't require that directly of dealerships, but it would mandate that car owners be notified of recalls when they apply for registration and at the time of registration renewal. "Important recall notices can get bogged down with legalese, and busy consumers can miss a life-saving update," Blumenthal said. "This legislation provides a common-sense avenue to ensure every driver is reminded and encouraged to make the necessary repairs." Such a law may have prevented Solis' death. Although his '02 Accord had been recalled in late 2011, his wife and lawyers say he had no knowledge of the recall when he bought the car used from All Star Auto Sales in 2014, nor did he know of the dangerous flaw when he set out to visit his parents on Jan. 18. Only one month earlier, Congress held hearings on Takata and Honda's long-standing inaction related to the defective airbags. Documents showed both companies were aware of problems with the airbags as early as 2004, and a report in The New York Times detailed secret airbag tests, the results of which alarmed Takata engineers. Yet the company withheld the information from federal safety administrators.

Judge allows class-action lawsuits against Honda, automakers

Millions of plaintiffs in 2014 brought a class-action lawsuit in against Takata and Honda, and the airbag manufacturer and carmaker petitioned to have the case thrown out. A US District Judge in Miami ruled against the companies on December 3, allowing the case to proceed. The case in question, Craig Dunn et al vs. Takata Corporation et al, is thought to be the first class action filed in the ongoing airbag imbroglio. Other cases have been filed, but on behalf of individuals. Takata and Honda are named defendants in the case, but the 453-page suit is also aimed at BMW, Ford, Mazda, Nissan, and Subaru. The plaintiffs claim violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act specifically by Takata and Honda, alleging that those two companies conspired to hide information about airbag inflators that could rupture and spray shrapnel around a car's cockpit. Honda said Takata hid information from it and ceased doing business with the airbag company, while a recent Wall Street Journal review of documents indicated that Takata changed testing information to suppress actual results from Honda. The class-action suit charges violations of the Magnuson-Moss Warranty Act, too. Meanwhile, Takata has strengthened its legal team with the addition of Lanny Breuer, a partner at Covington & Burling LLP. Breuer was a US assistant attorney general from 2009 to 2013, heading the criminal division. Honda has been dealing with individual cases out of court, with litigation in cases of five out of six US deaths settled for undisclosed sums.