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Daimler Announced 840K-vehicle Recall Over Takata Airbag Issue


— February 11, 2016

Earlier this week, German automaker Daimler announced 840K-vehicle recall over Takata airbag issue. The company plans to take a $383.96M (340M euros) hit to its fiscal year 2015 results to pay for the recall.


Earlier this week, German automaker Daimler announced 840K-vehicle recall over Takata airbag issue. The company plans to take a $383.96M (340M euros) hit to its fiscal year 2015 results to pay for the recall.

The U.S. National Highway Transportation Safety Administration (NHTSA) advised Daimler of the potential problem with some Takata airbags installed in Daimler vans and Mercedes-Benz cars. The company used this information to determine that roughly 705K Mercedes-Benz cars and around 136K Daimler vans needed to be recalled in the U.S.

MEDLEY, FL - MAY 22: A deployed airbag is seen in a 2001 Honda Accord at the LKQ Pick Your Part salvage yard on May 22, 2015 in Medley, Florida. The largest automotive recall in history centers around the defective Takata Corp. air bags that are found in millions of vehicles that are manufactured by BMW, Chrysler, Daimler Trucks, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota. (Photo by Joe Raedle/Getty Images)
MEDLEY, FL – MAY 22: A deployed airbag is seen in a 2001 Honda Accord at the LKQ Pick Your Part salvage yard on May 22, 2015 in Medley, Florida. The largest automotive recall in history centers around the defective Takata Corp. air bags that are found in millions of vehicles that are manufactured by BMW, Chrysler, Daimler Trucks, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota. (Photo by Joe Raedle/Getty Images)

This recall decreases Daimler’s 2015 net profits to $9.8B (8.7B euros) for 2015. Daimler group earnings before interest and tax (EBIT) come in at $14.8B (13.2B euros).

To date, the defective Takata airbag inflators have caused ten deaths worldwide. Nine of those fatalities have been in the U.S. and one in Malaysia. All but one death happened in Honda vehicles. Honda has been the hardest hit of the automakers in this crisis. The non-Honda vehicle fatality was in a Ford Ranger pick-up, which prompted that U.S. automaker to broaden the scope of its own recall.

Source:

Daimler recalls 840K cars due to Takata air bags

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