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The Automotive Recycler Association: Lawsuit Against The Takata Corp.

448 Words2 Pages

The Automotive Recycler Association has filed a lawsuit against the Takata Corp. The Takata Corp is a company that is based in Japan. They sell a variety of automotive parts, including airbags. It is one of the leading suppliers of automotive safety systems in the world. Automotive Recycler Association has stated that they were trying to salvage and resell airbags that Takata had made, and they were not able to do so.

The Automotive Recycler Association has stated that Takata had known that the airbags were defective ever since 2004. The company allegedly conducted several secret tests. However, Takata withheld that information. Takata has also been accused of misleading consumers in order to make money.

The Automotive Recycler Association stated that they expected Takata and automakers would let them know within a reasonable amount of time if the airbags had any defects. This is also required by common, federal and common law. Because Takata did not disclose this information, the Automotive Recycler Association overpaid for the vehicles that had the Takata airbags. …show more content…

They stated that the recyclers were not able to trade or sell the airbags because they do not have any value. This is why the company overpaid for salvaged vehicles with the airbags.

Michael E. Wilson is the CEO of the Automotive Recycler Association. When he was asked about the price of the salvage airbag, he declined to comment. However, he did state that the recycled components are typically worth between 20 and 90 percent of the manufacturer's price.

Wilson stated that the bidding for salvaged cars has become more competitive. Many people bid online. People who are bidding in the United States often find themselves bidding against people who are

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