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Home » Global Supply Chain Management » Lure of Cheaper Airbag Lands Auto Industry in Litigation, Largest Recall Ever

Lure of Cheaper Airbag Lands Auto Industry in Litigation, Largest Recall Ever

August 30, 2016
The New York Times

In the late 1990s, General Motors got an unexpected and enticing offer. A little-known Japanese supplier, Takata, had designed a much cheaper automotive airbag.

G.M. turned to its airbag supplier - the Swedish-American company Autoliv - and asked it to match the cheaper design or risk losing the automaker's business, according to Linda Rink, who was a senior scientist at Autoliv assigned to the G.M. account at the time.

But when Autoliv's scientists studied the Takata airbag, they found that it relied on a dangerously volatile compound in its inflater, a critical part that causes the airbag to expand.

"We just said, 'No, we can't do it. We’re not going to use it,'" said Robert Taylor, Autoliv’s head chemist until 2010.

Today, that compound is at the heart of the largest automotive safety recall in history. At least 14 people have been killed and more than 100 have been injured by faulty inflaters made by Takata. More than 100 million of its airbags have been installed in cars in the United States by General Motors and 16 other automakers.

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    KEYWORDS Automotive Food and Beverage Global Supply Chain Management Regulation & Compliance SC Security & Risk Mgmt Supply Chain Analysis & Consulting
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