Global recall of 7 million vehicles: GMs takada nightmare

 Global recall of 7 million vehicles: GMs takada nightmare

After entering the new century, Gaotian group, based on lean production management, finally chose the former with greater risk in the dispute between the route of ammonium nitrate and guanidine nitrate. Compared with the stable guanidine nitrate, the price of ammonium nitrate is low and the gas generation rate is greatly improved. Ammonium nitrate, which costs only a fifth of guanidine nitrate, soon brought Takata to its peak, with a record revenue of 642.8 billion yen in 2014.

However, the cost of choosing ammonium nitrate is the risk of explosion which is relatively easy to get out of control, and the secondary injury to passengers caused by the gas generator components flying out with the explosion. The instability of ammonium nitrate is especially prominent in high temperature and humidity. Ammonium nitrate was also responsible for the explosion in Beirut, the capital of Lebanon.

In 2008, as the only automobile airbag company using ammonium nitrate, takada groups time bomb began to count down. That year, Honda announced the recall of 4000 defective vehicles. Since 2015, with the continuous fermentation of reports on takada airbag accident in the media, almost all large-scale car companies have started a large-scale recall. In 2015 alone, more than 2.5 million Japanese cars were recalled due to airbag problems.

Two years later, in 2017, with domestic and foreign troubles, Takata group finally admitted to fraud and was willing to pay a one-time settlement of US $1 billion to thoroughly understand the bottomless litigation. Of this amount of compensation, 850 million US dollars will be directly given to the affected auto companies. However, as the Japanese auto companies, which always pay attention to the co advance and retreat culture, gradually removed Takata group from the list of suppliers that year, takada finally applied for bankruptcy protection in June of that year. In 2018, most of the business of the split Takata group was won by Junsheng group.

So far, the global death toll from the explosion of takada airbag gas generator has reached as high as 27 people. As European car companies are more inclined to choose two local suppliers, Autoliv of Sweden (acquisition of Delphi airbag business) and German ZF (acquisition of Trina Solar group of the United States), American automobile companies that rely more on Takata airbags have unfortunately become the most affected victims. Of all the deaths in the world, 18 occurred in the United States, including 15 cases involving Honda, 2 cases involving Ford, and no similar safety accident occurred in general motors.

As a serious disaster area of Takata airbag problem, the United States has recalled tens of millions of vehicles with hidden dangers, involving 63 million gas generators, and 19 regional automobile enterprises were implicated. This also makes this series of recall actions become the largest recall event in automobile history. According to the national highway traffic safety administration of the United States, there are still more than 11 million vehicles in the United States with Takata airbag hidden danger.

Takatas bankruptcy in 2017 also meant that GM had to pay for the recall at its own expense.

Previously, in order to avoid further increasing capital pressure in the process of electric and intelligent transformation, GM has appealed to the National Highway Traffic Safety Administration for four consecutive times since 2016, hoping that the authority can withdraw similar recall orders. For this reason, GM has commissioned a third-party organization to carry out road test and laboratory test on nearly 4300 airbags, and the results show that none of the takada airbags has any problems. However, according to the settlement agreement between Takata and the U.S. government in 2015, Takata did admit that there were design defects in GMs front airbags.

After the announcement of the Nov. 23 recall, GM said it would comply with NHTSAs decision and abandon its attempt to appeal a fifth time. Dan Flores, a GM spokesman, said: there are no gas generators that explode in road tests or laboratories, but GM wants to avoid fighting the government.

One of the important reasons for the huge cost is that the recall involves many of GMs best-selling models over the past decade or so. This includes a number of pickup trucks and SUVs from 2007 to 2014, including Cadillac, Chevrolet sorod Silverado, Chevrolet Saab ban suburban and GMC Sierra. Among them, the Chevrolet sorod is the second best-selling model in North America for a long time. However, sales of these models are extremely limited in China, and the recall has little impact on Chinese consumers.

Earlier, on November 19, Mary Bora, GMs chief executive, just announced that it would invest $27 billion in electric vehicles and autonomous driving in the next five years, and plans to launch 30 new electric models by 2025, with a view to boosting the sales of electric vehicles to 1 million by then.

On November 24, GM officially announced that it would withdraw its lawsuit against the California government over fuel economy regulations. In response to Californias independence from the U.S. federal government to implement strict environmental regulations, GMs lawsuit has been strongly supported by the White House. But with Bidens confirmation that he will be the next president of the United States and Bidens $2 trillion new energy plan, GM, which has long hesitated, has finally decided to take the initiative to face the new era.