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Takata airbags were adopted in late 1990s to save a few dollars per vehicle

According to a new report from The New York Times, General Motors started using airbags supplied by Takata in the late 1990s as a cost-saving measure even after receiving warnings about their safety. Takata's airbag modules were reportedly 30-percent cheaper than its competitors' offerings. GM approached Autoliv, which until that time had been its main airbag supplier, to see if it could offer a competitively priced alternative to Takata. Autoliv tested Takata's airbag inflator and found that it was unsafe, according to scientists who worked for the supplier at the time. Chris Hock, who until recently still worked for Autoliv, said the inflator "turned it into shrapnel" when tested. GM was subsequently warned by Autoliv that Takata's ammonium nitrate inflators were potentially dangerous. Still, "General Motors told us they were going to buy Takata's inflaters unless we could make a cheaper one," said Linda Rink, who served as a senior scientist at Autoliv at the time. A spokesperson for General Motors told The Times that it would be inappropriate to comment on discussions that "occurred two decades ago between Old GM and a supplier." So far, no Takata-supplied airbags have ruptured in an accident, and GM was far from the only automaker to make a switch to Takata airbags in order to save money. A total of 64 million airbags have so far been recalled from nearly every automaker selling vehicles in America. A spokesperson from Honda said in a statement to The Times that "There was no industry understanding in the late 1990s" that ammonium nitrate airbag inflators were risky. The majority of deaths linked to Takata airbags were in vehicles built by Honda. Takata still produces airbag inflators that use an ammonium nitrate compound, despite the devices being blamed for at least 14 deaths. Click here for NHTSA's dedicated site on open Takata recalls. Related Video: News Source: The New York TimesImage Credit: Joe Skipper / Reuters Government/Legal Recalls GM Honda Safety autoliv

180,000 new vehicles are sitting, derailed by lack of transport trains

If you're planning on buying a new car in the next month or so, you might want to pick from what's on the lot, because there could be a long wait for new vehicles from the factory. Locomotives continue to be in short supply in North America, and that's causing major delays for automakers trying to move assembled cars.
According to The Detroit News, there are about 180,000 new vehicles waiting to be transported by rail in North America at the moment. In a normal year, it would be about 69,000. The complications have been industry-wide. Toyota, General Motors, Honda and Ford all reported experiencing some delays, and Chrysler recently had hundreds of minivans sitting on the Detroit waterfront waiting to be shipped out.
The problem is twofold for automakers. First, the fracking boom in the Bakken oil field in the Plains and Canada is monopolizing many locomotives. Second, the long, harsh winter is still causing major delays in freight train travel. The bad weather forced trains to slow down and carry less weight, which caused a backup of goods to transport. The auto companies resorted to moving some vehicles by truck, which was a less efficient but necessary option.

Honda overhauls North American operations with eye towards more autonomy

The increasing sales success of Honda North America (HNA) has led to Honda brass in Japan reorganizing regional operations here. The management shuffling here and in Japan is intended to both streamline and confer more responsibility on HNA "as the region assumes a larger role in shaping Honda's global business," and as Honda builds more facilities that serve several roles in the product development pipeline.
Honda's executive vice president and president of HNA Tetsuo Iwamura was named COO of automotive operations, taking over a position that had been handled by company president Takanobu Ito. Iwamura's new role puts him in charge of anything Honda makes that has four wheels, which Automotive News says equates to 78 percent of the company's global revenue.
The current company CFO, Fumihiko Ike, will fill the now-vacant role of company chairman and Kohei Takeuchi will take his place. Takeuchi is presently the operating officer, general manager of the accounting division. The executive swaps take effect April 1, 2013.