Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Daimler AG, Ferrari selling some new vehicles with faulty air bags: U.S. Senate report

Published 07/20/2016, 04:30 PM
© Reuters. Mercedes-Benz logo is pictured before company's annual news conference in Stuttgart

By David Shepardson

WASHINGTON (Reuters) - Daimler AG's Mercedes-Benz USA and Daimler Vans units and Ferrari NV (NYSE:RACE) are among a small group of automakers selling some new vehicles with faulty Takata airbags that will be subject to recalls by the end of 2018, a U.S. Senate report said on Wednesday.

The vehicles are legal to sell since the U.S. National Highway Traffic Safety Administration (NHTSA) has said they will not become potentially unsafe until exposed to high humidity for an extended period. Safety advocates and some in Congress have criticized the sale of vehicles that will be recalled.

Senator Bill Nelson, a Florida Democrat, said the vehicles include the 2016 Mercedes-Benz Sprinter and 2016-2017 Mercedes-Benz E-Class Coupe/Convertible and numerous 2016 and 2017 Ferrari models including the FF, California T, 488 GTB/488 Spider, F12/F12tdf and GTC4 Lusso.

Nelson said the report underscores "the failure of certain automakers and regulators to level with people about the true extent of the problem and to have the cars fixed before they’re sold."

Mercedes Benz USA spokeswoman Donna Boland said the company has told regulators that its "dealers will be informing prospective buyers of the pending recall on these models at the time of purchase in the very near future."

Ferrari spokeswoman Krista Florin said the Italian automaker also plans to notify customers of the future recalls.Seven out of 17 automakers Nelson contacted have admitted to equipping some new vehicles with defective Takata airbags, including Toyota Motor Corp (T:7203), Fiat Chrysler Automobiles NV (MI:FCHA) and Volkswagen AG (DE:VOWG_p). All agreed to notify buyers of the planned recalls.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Tesla Motors Inc (O:TSLA) is the only automaker that has not provided a written response, Nelson said. Tesla did not respond to a request for comment on Wednesday from Reuters. NHTSA said in May Tesla would be required to recall vehicles for Takata inflators.

Takata inflators can explode with excessive force and spray metal shrapnel. They are suspected in at least 13 deaths worldwide and more than 100 injuries.

In May, Takata agreed to declare as defective, by 2018, another 35 million to 40 million U.S. inflators that lack drying agents in frontal airbags after 14 automakers previously recalled more than 24 million U.S. vehicles. Worldwide nearly 100 million inflators have been declared defective.

NHTSA said there have been no ruptures in vehicles built since 2008. According to NHTSA, the vehicles do not become vulnerable to exploding airbags without long-term exposure to high humidity. In the short-term, the agency says, they are safe to drive and much safer than older models.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.