U.S. Transportation Secretary Anthony Foxx announced a $14,000per day fine against airbag manufacturer Takata for “failing tofully cooperate” with the ongoing investigation by the NationalHighway Traffic Safety Administration (NHTSA) into the company’sdefective airbags. Late in 2014 NHTSA issued two Special Orders toTakata requiring the company to provide documentation and othermaterial relating to the agency’s investigation.

|

“Safety is a shared responsibility and Takata’s failure to fullycooperate with our investigation is unacceptable and will not betolerated,” said Secretary Foxx. “For each day that Takata fails tofully cooperate with our demands, we will hit them with anotherfine. But, it’s not enough. I am asking Congress to pass the GROWAMERICA Act which would provide the tools and resources needed tochange the culture of safety for bad actors like Takata.”

|

To date, Takata has not fully cooperated with the investigation,according to the NHTSA.

|

The GROW AMERICA Act includes provisions that would requirerental car agencies to remedy any safety defects under recallbefore renting a vehicle and require used car dealers to do thesame before selling a vehicle. Under current law, new cars must befixed before sale. Rental car agencies or used car dealers have nosimilar federal provision.

|

“Every vehicle under an open safety recall should be repaired assoon as possible,” said Secretary Foxx. “Requiring rental caragencies and used car dealers to fix defective vehicles beforerenting is a common-sense solution that would make our roads safer.Safety advocates and the rental car industry have taken a stand forsafety, and we need Congress to do so as well.”

|

If you’re concerned that the vehicle you plan to rent, lease orbuy has an open recall that needs to be addressed, you can check onthe make and model by using NHTSA’s free VIN look-up tool onsafercar.gov. On that website, uncompleted recalls areidentified by entering the Vehicle Identification Number (VIN).NHTSA’s Safercar mobile app, available for both Apple devices and Android devices, provides users free access to key safetyinformation, including recalls and safety performance.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].