Final Presntation Group - 11

Final Presentation
TAKATA AIRBAG RECALL

Ashmita Mehra – 200588580
Manpreet Kaur - 200581774
Santhosh Dhinakar Ramakrishnan - 200583209
HR 1013 Organizational Behavior
Vahideh Rahnama
April1, 2024
Takata (Unternehmen) logo.Svg. In Wikipedia.

Introduction
In this study, we examine the unethical actions of a private corporation that have
unfortunately resulted in several fatalities among the public. Our inquiry reveals the
company's disdain for welfare and safety in favor of profit, which was especially clear
in the way it handled the first incident. Moreover, a different private organization
contributed to the concealment of these problems, worsening the decline in public
confidence. These assertions are validated by our extensive investigation and data
gathering, which is backed up by citations and references. In particular, we clarified the
Takata Air Bag Scandal, which sent a ripple throughout the globe and led to the largest
airbag recall by many eminent international organizations.
Overview
• Faulty airbag inflators, containing ammonium nitrate-based propellant, caused
explosions within vehicles, resulting in deaths, injuries, and a massive global recall.
• The crisis unveiled issues with Takata's safety protocols, transparency, and quality
control, leading to severe consequences for the company.
Key Data
• Initial recall in 2013 affected 3.6 million cars; subsequent recalls resulted in a total of
56 million airbags and 41.6 million vehicles recalled by April 2019.
• Takata's President and CEO resigned in 2014.
• Takata began investigating inflator issues as early as 2003, despite claims of starting
in 2005.
• Takata estimated the recall cost at USD 24 billion for over 280 million inflators.
Impact on the Organization
• Financial repercussions: Bankruptcy filed due to recalls, legal fees, fines, and
settlements.
• Reputational damage: Loss of consumer trust, strained automaker relations.
• Legal difficulties: Criminal prosecution, regulatory sanctions, fines.
• Market share loss: Decline in stock price and market share.
• Organizational changes: Restructuring and asset sale to Key Safety Systems.
Recent Developments
• Takata admitted guilty to fraud, fined $1 billion, and established funds for
injured individuals and impacted car manufacturers.
• 37 million cars recalled by 19 automakers, covering 50 million airbags.
• December 2019, additional recall affecting 1.4 million older German and
Japanese vehicles
Tataka Airbag Scandal Company Managed the situation
• Outstanding Customer Service and Support
• Advocacy for Consumer Safety
• The National Highway Traffic Safety Administration (NHTSA), and Takata
Corporation worked collaboratively
Comprehensive Analysis
1. The National Traffic and Motor Vehicle Safety Act authorized the NHTSA
2. The National Highway Traffic Safety Administration officially begins looking into
Takata airbag defects on June 11, 2014
3. NHTSA offered two channels
a. Report a vehicle safety issue to NHTSA online at our vehicle safety website:
www.nhtsa.gov
b. NHTSA operated the U.S. Department of Transportation’s (DOT) Vehicle Safety
Hotline and generated 888-327-4236 or 800-424-9393 toll-free from anywhere in the
United States, Puerto Rico, and the Virgin Islands. Spanish-speaking representatives
offered a dedicated number, 800-424-9153, for use by people who are deaf or hard of
hearing.
4.Office of Defect Inquiry(ODI) evaluated additional information based on four
components
Appropriateness of responses
• Takata Corporation in Japan responsible for 300 injuries and 25 fatalities.
• Honda stated they knew of more than 100 injuries and thirteen deaths (seven in the
United States plus six in Malaysia) that were related to Takata airbags
• On June 23, 2014, auto manufacturers BMW, Chrysler, Ford, Honda, Mazda,
Nissan, and Toyota announced they were recalling over three million vehicles
worldwide due to Takata Corporation-made airbags.
• On 4 December 2019, Takata recalled another 1.4 million front driver inflators in the
U.S.
Summary
To sum up, the Takata Air Bag Scandal represents the largest recall in the history of the
automotive industry, highlighting overlooked chances for avoidance. Selling a product
that is known to be defective and causes serious harm or even death raises serious
ethical questions. Our analysis underscores the need for proactive steps to avert such
catastrophes, and we implore organizations to give careful consideration to
comprehensive research and analysis to successfully address problems. Strategic
product development may have prevented this crisis and preserved the company's
reputation even before the original issue emerged. In the future, our deeper
comprehension of these intricacies will guide how we address comparable problems,
highlighting the significance of accountability and foresight in product safety.
Reference
Takata Airbag Recall: Everything You Need to Know

https://www.consumerreports.org/cars/car-recalls-defects/takata-airbag-recall-
everything-you-need-to-know-a1060713669/
What Is The Defect Causing The Takata Airbag Recall?

https://www.newsomelaw.com/practice-areas/product-liability/faq/what-is-the-defect-
causing-the-takata-airbag-recall/#:~:text=Regulators%20determined%20that%20the
%20potentially,cause%20the%20inflator%20to%20explode.
Takata (Unternehmen) logo.Svg. In Wikipedia.

https://commons.wikimedia.org/wiki/File:Takata_(Unternehmen)_logo.svg
Plainly Difficulty. (2022, July 16). Scandal: Takata Airbags The Worst Product Recall in
History? | Short Documentary.www.youtube.com: https://www.youtube.com/watch?
v=aUa2VXecghg

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Final Presentation

TAKATA AIRBAG RECALL

Takata (Unternehmen) logo.Svg. In Wikipedia.

Takata Airbag Recall: Everything You Need to Know

What Is The Defect Causing The Takata Airbag Recall?

Takata (Unternehmen) logo.Svg. In Wikipedia.

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