US: largest auto retailer stops selling Takata-equipped cars image

AutoNation Inc, the biggest US auto retail group has decided to cease sales of cars that have been equipped with Takata-produced airbags, following NHTSA’s notice that almost 8 million cars represent a safety hazard for the driver and passengers.

The Japanese auto safety parts producer Takata has been involved in the second-largest recall scandal of the year – as airbags built by the company have been involved in a huge global recall that involves more than 16 million units from various brands.

According to Chief Executive Mike Jackson, the company “made the decision not to retail any vehicle that is involved in this recall until it is repaired and the vehicles that do come in for service, we are advising the customer not to put a passenger in front of that airbag” – mirroring calls made by Toyota and General Motors.

Although the group is the largest auto retailer in the US, the company actually has below 400 units of used cars affected by the Takata recall – in a dealer network of 277 vehicle franchises, making up just 1 to 2% of the firm’s inventory.

In other related news, the CEO said the group’s auto sales would continue to increase in 2015 after the company reported a 15% jump in third-quarter profit and its shares rose 7% after exceeding Wall Street forecasts.

Via Reuters