Takata Seeks $7.5M Over Air Bag Supplier Defects

June 26, 2019

A lawsuit accused ARC of breaching its contract, express and implied warranties and product fitness warranties, as well as a count for supplying goods with manufacturing defects.

June 26, 2019—Takata Corp. sued ARC automotive, an air bag inflator supplier, seeking at least $7.5 million for ARC’s alleged sales of defective parts that triggered a major GMC safety recall, reports Law 360.

The five-count suit accused ARC of breaching its contract, express and implied warranties and product fitness warranties, as well as a count for supplying goods with manufacturing defects.

Takata filed for bankruptcy in June 2017 after a deadly series of explosive failures involving airbags it supplied to automakers. Remnants of the company's businesses were sold for $1.6 billion to Key Safety Systems Inc., with estate proceeds to be used to compensate victims of what became the largest automotive recall in American history.

Tennessee-based ARC, which supplied side air bag inflators to Takata, was reportedly under investigation by the National Highway Traffic Safety Administration as far back as July 2015, a month after Takata recalled 33.8 million faulty air bags.

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