May 18, 2015 

DEFECT INFORMATION REPORT 

TK HOLDINGS INC. 

PSDI, PSDI-4, and PSDI-4K DRIVER AIR BAG INFLATORS 

1. Manufacturer's name: 

TK Holdings Inc. ("Takata"). 

2. Items of equipment potentially affected: 

All PSDI, PSDI-4, and PSDI-4K air bag inflators installed in frontal driver air bag 

modules in vehicles in the United States . This Report contemplates a national recall of 

the subject inflators. The subject inflators include all years of production , from start of 

production to end of production. 

In accordance with the proposed stag ing of the remedy program described in sec tion 7 

below , the scope of the recall contemplated by this Report includes vehicles containing 

the subject inflators that were previously recalled and remedied by the affected vehicle 

manufacturers , including under recall numbers 08V-593 , 09Y-259 , 1 OV-041, 11 Y-260, 

14V-351 , 14V-343 , 14Y-344 , 14V-348 , 14Y-817, 14Y-802 , and 15V-153. 

The inflator s covered by this determination have been installed as original equipment or 

remedy parts in vehicles sold or registere d in the United States and manufactured by the 

following five vehicle manufacturer s (listed alphabetically): 

American Honda Motor Co. 

1919 Torrance Blvd . 

Torrance , CA 90501-2746 

Phone: 310- 783-2000 

BMW of North America 

P.O. Box 1227 

Woodcliff Lake, NJ 07677-7731 

Phone: 201-3 07-4000 

Chrysler Group LLC 

800 Chrysler Drive 

Auburn Hills, Ml 48326-2757 

Phone: 1-800-853-1403 
Ford Motor Compa ny 

330 Town Center Drive 

Dearborn, Ml 48126-2738 

Phone: l-866-436-73 32 

Mazda North Ame rican Operations 

46976 Magellan Drive 

Wixom, MI 48393 

Phone: 248-295-7859 

3. Total number of items of equipment potentially affected: 

TK HOLDINGS INC. 

May 18, 2015 

Takata estimates that a combined total of approx imately 17.6 million subject inflators 

have been installed in vehicle s in the United States as both original equipment and 

remed y parts. Of that numb er, Takata estimates that approximately 4.7 million are PSDI 

inflators and approximately 12.9 million are PSDI-4 and PSD1-4K inflator s. Included 

within these estimates are approxi mately 9.7 million inflators that were subject to 

previous recalls or safety campaigns. 

4. Approximate percentage of items of equipment estimated to actually contain the 

defect: 

The number of field incidents known to Takata involving rupture s of PSDI subje ct 

inflators in the United States is fifty-nine (59). Fifty-four (54) of those field incident s 

occurred in vehicles that were subject to previous recalls. The number of field incidents 

known to Takata involvin g ruptur es of PSDI-4 and PSDI-4K subject inflators in the 

United States is four ( 4). For comparison purposes , Takata estimates that there have been 

approximately 258,500 total field deployments of PSDI subject inflators and 

approximately 516,000 total field deployments of PSDI-4 and PSDI-4K subject inflators 

in the United States. Those estimates are based on the numbers of subject inflator s 

described in section 3, estimates of the average age of the subject inflators in the field (11 

years for PSDI and 8 years for PSDI-4 and PSD1-4K), and an estimate (used by NHTSA 

in its data analyses) that an average of 0.5 percent of frontal air bags deploy in the field 

each year. In addition , as described below, since September 2014 , Takata has conducted 

ballistic testing of a selected population of subject inflators returned by vehicle 

manufacturer s, including a disproportionate number of subject inflators return ed from 

areas of high absolute humidity ; that ballistic testing to dat e has resulted in no (zero) 

ruptur es of PSDI subject inflators tested and has resulted in nine (9) ruptures 

(approximately 0.0722 percent) of PSDI-4 and PSD1-4K subject inflators tested, all from 

high absolute humidit y States. 

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May 18, 2015 

5. Description of the defect: 

As a result of the developments and circumstances described below and in section 4 

above , Takata has determined that a defect related to motor vehic le safety may arise in 

some of the subject inflators. 

The batwing-shaped propellant wafers in some of the subject inflators may experience an 

alteration over time, which could potentially lead to over-aggressive combustion in the 

event of an air bag deployment. Depending on the circumstances, this potentia l condition 

could create excessive internal pressure when the air bag is dep loyed , which cou ld result 

in the body of the inflater rupturing upon deployment. Based upon Takata 's investigation 

to date, the potential for such ruptures may occur in some of the subject inflators after 

severa l years of exposure to persistent conditions of high abso lute humidity. In addition , 

this potential for rupturing may also depend on other factors, including manufacturing 

variability . 

In the event of an inflater rupture, metal fragments could pass through the air bag cushion 

material, which may result in injury or death to vehicle occupants. 

6. Chronological summary of events leading to this determination: 

May 2003 - A PSDI-4 inflater ruptured in a BMW vehicle in Switzerland. After Takata 

was notified, the investigation determined that the 17-month-old inflator ruptured due to 

an overloading of propellant in the assembly of the inflater at issue. Takata introduced 

additiona l quality control measures designed to avoid such overloadi ng. 

May 2004 - A PSDI inflater manufactured in October 2001 ruptured in a Honda veh icle 

in Alabama . Takata was first notified of the event a year later in May 2005 and received 

only photographs for analysis. Takata tentatively concluded that the incident may have 

involved a potentially compromised tape seal on this inflator or possibly an overloading 

of propellant in the intlator at issue. 

2007- 2011 - After Takata was notified in late 2007 of a rupture of a PSDI intlator in a 

Honda vehicle , Takata promptly began an investigation. Following that investigation, in 

October 2008 , Takata recommended that Honda conduct a safety recall to replace certain 

PSDI inflators, and Honda did so. Based on further investigation and additiona l 

information developed by Takata, Honda expanded its initial recall on severa l occasions 

to cover all vehicles containing PSDI inflators manufactured prior to December 1, 200 1. 

2010- Present - Beginning in 20 10 and at different periods thereafter, in connection with 

its investigation into reports of inflater ruptures, Takata has consu lted with the 

Fraunhofer Institute for Chemica l Technology ("Fraunhofer ICT") to provide an 

independent research investigation of the root cause of the inflater ruptures. Fraunhofer 

ICT conducts research for government and industry and its core competencies include 

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energetic materials and energe tic systems. Fra unhofe r ICT is considered the leadin g 

resea rch organization within the pyrotechn ic gas generator and airbag system indu stry. 

Septemb er 20 l 3 - Takata became aware of a ruptur e of a PSDI driver inflator in a Hond a 

vehicle in Florida that was not cove red by the prior Honda reca lls. Takata immediate ly 

commenced an additional investigation. 

December 20 13 - April 20 15 - Taka ta was informed of eight addition al incid ents in 

which PSD I and PSDI -4 driver intlat ors not cove red by the prior Honda reca lls had 

ruptur ed. The se eight add itional fie ld incidents occ urred in the following States: Florida 

(6), Ca lifornia (1), and No rth Carol ina (l). 

June 11, 20 14 - Takata sent a letter to NHTSA stating that, consistent with the fact that 

Takata 's highest priority is safe ty, and in light of the Company' s desire to address 

potential safety concerns promptl y and thoroughly, Taka ta wo uld support NHTSA's 

request for reg ional fie ld action s to replace PSDI and PSOI-4 inflators manu factur ed 

betwee n January I, 2004 and June 30, 2007, that were installed in vehicles sold in or 

registered in Puerto Ric o, Florida , Hawa ii, and the U.S. Virgin Islands, based on the high 

levels of absolute humidit y in those area s. (Those reg ional field actions also cove red 

certain passe nger inflators.) The five vehicl e manufacturers that had installed these 

driver inflators promptly ag reed to conduct the requested regio nal field actions and to 

send the replace d inflato rs to Taka ta for testing. 

June 11, 20 14 - Based on six field ruptur es of Taka ta inflators (thr ee driver inflator s and 

thr ee passenger inflators), NHTSA opened a defect investigation, PE 14-016. On March 

2, 2015 , that investigation was upgrade d to EA 15-001. 

September 2014 - May 2015 - As part of its continuing investigat ion, Takata has 

conducted extensive testing of inflators returned by the vehicl e manufactur ers. This 

testing has included (but has not been limit ed to) ballistic tests, live dissections, 

propellant analysis for mo isture, chemical ana lysis, air and helium leak testing , and CT 

scanning. As of May I, 2015, Takata has ballisticall y tested 174 PSDI inflators and 

12,464 PSDI-4 and PSDI-4K inflators. No ne (zero) of the PSDI inflators ruptured during 

this testing, and nine (9) of the PSDI-4 and PSD1-4K inflators ruptur ed durin g this 

testing, yielding a ruptur e rate for the PSDI-4 and PSD I-4K infl ators of 0.0722 perce nt. 

Six ( 6) of the ruptur ed inflator s were returned from Florida , two (2) from Puerto Rico, 

and one (1) from non-coastal Georgia . 

Although the Company's testing and invest igation is ongoing, with the aid of the 

independent researc h performed by Fra unhofer ICT, Takata ha s reached some 

preliminary conclusion s. It appears that the inflate r ruptur es have a multi -factor root 

cause that includ es the slow-acting effec ts of a persistent and long term exposu re to 

climates with high temperatures and high absolute humidity . Exposure over a period of 

seve ral yea rs to persistent leve ls of high absolute humidit y outside the inflate r, combined 

with the effects of thermal cycling, may lead to moisture intru sion in some inflato rs by 

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means of diffusion or permeation. Fraunhofer JCT has identified the possibility in these 

climates for moisture intru sion into the inflater ove r time and a process by which the 

moisture may slowly increase the poro sity of the propellant with in the inflater. 

Fraunhofer ICT's analys is also indicates that the design of the inflater and the grain 

(shape) of the propellant can affect the likelihood that the porosity change will occur. In 

addition, the analys is to date suggests that the potential for this long-term phenomenon to 

occur was not within the scope of the testing specifications prescribed by the vehicle 

manufacturers to Takata for the va lidation and production of the subject inflators as 

origina l equipment. 

The results of the Fraunhofer JCT research and the Takata testing to date are consistent 

with the location and age of the intlators that have ruptured in the field and in Takata's 

testing. 

May 2015 - Based upon the results of its investigation and the preliminary conclusions 

identified above, as well as NHTSA 's insistence that action be taken to mitigate the risk 

posed to safety by these inflators , Takata decided to submit this Defect Information 

Report. 

7. Description of the remedy program: 

Consistent with the Consent Order issued by NHTSA on or about May 18, 2015, Takata 

shall cooperate with NHTSA in all future regulator y actions and proceedings pursuant to 

NHTSA's authority under the Nationa l Traffic and Motor Vehicle Safety Act, or any 

regulations thereunder, including 49 U.S.C. § 30 120(c)(3), regarding the organization and 

prioritization of replacement air bag inflators. 

At the present time , Takata continues to produce a sma ll number of PSDI-4 inflator s for 

use as remedy parts. Takata intends to cease production of the subject inflators, includin g 

for use as remedy parts. 

Consistent with the above, including Takata's discussions with NHTSA, Takata's 

preliminary recommendation for the remedy program for the subject inflators is to use a 

phased customer notification and remed y approach . Under this approach, Takata plans to 

work with the manufacturers of the veh icles in which the subject inflators were installed 

to implement appropriate recalls to replace the subject inflators in four stages over time , 

as outlined here: 

• First, vehicles sold in or ever registered in any part of Florida, Puerto Rico, the 

U.S. Virgin Islands, Hawaii , the Outlying U.S. Territorie s, Texas, Louisiana, 

Georgia , South Caro lina, Alabama, Mississippi , California , Ok lahoma, North 

Caro lina, Virginia, Arkansas , Kentucky , Tennessee, lllinois, Delaware , Maryland, 

and Missouri, and conta ining subject inflators manufactured between the start of 

production and December 31, 2007; 

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• Second , vehicles sold in or ever registered in any part of Florida , Puerto Rico , the 

U.S. Virgin Islands, Hawaii , the Out lying U.S. Territorie s, Texas, Louisiana, 

Georgia, South Carolina , Alabama, Mississippi, Californ ia, Ok lahoma , North 

Caro lina, Virginia, Arkansas , Kentuck y, Tenne ssee, Illinois, Delaware, Maryland , 

and Missouri , and containing subject inflator s manufactured betwee n the start of 

production and December 31, 20 l l ; 

• Third , vehicles sold in or ever registered in any othe r States not listed above and 

containing subject inflator s manufactur ed betw een the start of production and 

December 31, 2007 ; and 

• Fourth , any remainin g vehicles not listed above that contain the subject inflators, 

including subject inflators previously installed as remedy parts. 

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