Takata Launching Recall Ad Campaign, Boosting Production of Air Bag Fix Kits
October 19 2015 - 2:50PM
Dow Jones News
Takata Corp. said Monday it will launch an advertising campaign
to reach more owners of vehicles carrying its recalled air bags
that can spray deadly shrapnel when inflated, and the supplier also
said it is ramping up the number of kits it is producing to fix the
problem.
The Japanese parts supplier is looking to raise completion rates
of the fix for the automotive recall, which stands at 19.2 million
vehicles—among the largest in U.S. history.
Takata said it is now producing 1 million inflater replacement
kits a month, and expects that number to grow through the remainder
of the year and into next. The supplier was previously producing
about 350,000 a month through December, and in May produced
700,000, said Kevin Kennedy, Executive Vice President of North
America TK Holdings Inc., in testimony before the Senate in late
June.
The ad campaign helps address an item in a May 8 consent order
from the National Highway Traffic Safety Administration that
required Takata to propose a plan to maximize recall completion
rates, with specific steps for assisting vehicle manufacturers in
customer outreach "through new and traditional media." A
representative said Takata submitted the campaign plan in July,
within the order's 60-day deadline.
The digital ad campaign—the first of its kind by an auto
supplier, the company said—comes after technicians at dealerships
have said car owners weren't rushing in for the fix. Technicians
interviewed by The Wall Street Journal in May said there was little
sense of urgency, which some attributed to a desensitization to
recalls. They also said dealership repair shops were perpetually
short on replacement kits.
Takata Chief Executive Shigehisa Takada said testing by the
company and independent parties continues to show that age and
long-term exposure to a hot and humid climate are significant
factors in the inflaters that have exploded.
The ad campaign will begin its rollout in regions associated
with those conditions: Florida, Puerto Rico, the U.S. Virgin
Islands, Hawaii, the outlying U.S. territories, Texas, Louisiana,
Georgia, South Carolina, Alabama and Mississippi.
The air bags with the faulty inflaters are found in autos
ranging from sport-utility vehicles made by Honda Motor Co. to
vehicles produced by Toyota Motor Corp. and General Motors Co., as
well as Daimler AG trucks. Vehicles equipped with such air bags
represent a significant chunk of the roughly 250 million vehicles
on U.S. roads.
Write to Anne Steele at Anne.Steele@wsj.com
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(END) Dow Jones Newswires
October 19, 2015 14:35 ET (18:35 GMT)
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