Court documents filed today allege that five auto companies were aware of defects that caused Takata airbags to potentially harm or kill motorists, but continued to use them in order to save on costs.
The documents filed by lawyers representing victims and their families claim that Honda, Ford, BMW, Toyota and Nissan have known about the issues with the Japanese manufacturer's airbags for more than a decade but used the airbags anyway because Takata was cheaper than its competitors and could produce the bulk quantities the automakers needed, according to the court documents.
The allegations come as Takata entered a guilty plea in a federal courtroom as part of its agreement with the Department of Justice. That deal, reached last month in the final days of the Obama Administration, saw three Takata executives indicted on wire fraud charges and required the company to pay US$1 billion in fines and restitution.
The largest portion of the penalty, US$850 million, would be paid to automakers who incurred billions of dollars in expenses recalling vehicles and replacing airbags. The National Highway Traffic Safety Administration, which sets automobile safety standards, recalled more than 64 million airbags in 42 million vehicles, making the Takata recall the largest in US history.
Takata also agreed to set up a US$125 million fund for the families and individuals impacted by the faulty airbags as part of the Justice Department deal.