Automotive
Takata's faulty airbags, the several deaths that have been linked to the problem, and the massive recall are bound to have a serious impact on the entire auto industry. |
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The fact that over 14 million vehicles have been recalled worldwide over the past six years due to Takata's faulty airbags, and several deaths have been linked to this problem, makes it a bit different than most recalls that occur pretty frequently. Since the defective airbags have proven to be deadly on a few occasions, it's only natural that the issue has prompted a government investigation, with a couple of U.S. Senators even demanding a criminal investigation. On top of being a major problem for the manufacturer itself, the faulty airbags are bound to have a serious impact on the entire auto industry, as well as customer perception of different car brands and vehicle safety.
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The ongoing Takata airbag recall is bound to play a big role in people's car buying decision-making process, with the reputation of many automakers taking a serious hit and making consumers avoid the brands that are affected by it. Takata is one of the world's largest airbag suppliers, with some of the biggest global automakers using its products, and so far, vehicles from more than 10 manufacturers have been affected, including the likes of Toyota, Honda BMW, Ford, Mazda, and Nissan. This is why, at least in the short term, consumers are expected to think twice before deciding to buy a car made by one of these automakers, and probably opting for another brand that is not affected by this pretty scary safety issue.
Recently, car makers like Toyota and General Motors experienced firsthand how recalls can leave a huge dent in a company's reputation, as they were forced to recall dozens of millions of vehicles over the past few years due to a variety of safety issues, resulting in settlements worth billions of dollars and plummeting sales. So, although the airbags are not manufactured by the car makers themselves, their brand identity will be a collateral damage, which might lower sales figures in the next couple of months. However, if there is one positive thing that comes out of this massive airbag recall, it's the expected changes to regulations on vehicle safety standards that will likely be prompted by the issue. Laws that have to do with fining automakers for failing to issue recalls in a timely manner clearly need to undergo changes, and lawmakers who have been asking for tougher penalties for these types of violations will now certainly get a significant boost.
By Jordan Perch | Embed |