Takata Faces $35 Million fine for Faulty Airbags; Japan Seeks Explanation from CEO

The Takata Corp. embroiled  in the faulty airbag controversy has defied the National Highway Traffic Administration's deadline to issue a nationwide recall of its airbags.

Takata could face a fine of up to $35 million if it does not comply.

"The recall should be called by auto manufacturers, not suppliers, so it is not up to us to decide the recall," said Takata spokesman Toyohiro Hishikawa, reports CNN Money. "But we will fully cooperate once the makers decide to recall."

The NHTA was disappointed at Takata's response, which wants to put the onus of the recall on the car suppliers rather than themselves.

Takata also insists that the problem occurs only in areas of high humidity so there is no need to extend a nationwide call but in only the affected states.

 "Takata shares responsibility for keeping drivers safe and we believe anything short of a national recall does not live up to that responsibility," the agency said. "We will review Takata's response in full to determine next steps."

More than 16 million vehicles have been recalled worldwide since 2008 to replace Takata air bag inflators, At least four deaths have been reported associated with the airbag burst, according U.S.Centre for Auto  Safety. The airbag runs the risk of exploding and hitting drivers with sharpnels.

The Japanese government has taken serious cognisance of the issue and summoned Shigehisa Takada, chairman and CEO of Takata Corp, to explain what the company was doing to resolve the issue, reports Reuters.

Takada met senior officials of  the Ministry of Economy, Trade and Industry (METI)on Monday. The specifics of the meeting are not yet out. He earlier  issued a statement saying that the company needs to do more

Officials of Takata have already attended a Congressional hearing in the U.S, and are slated to attend another on Wednesday.