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UNITED STATES DEPARTMENT OF TRANSPORTATION 

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

1200 New Jersey Avenue SE 

Washington, D.C. 20590 

__________________________________ 

In re: 

EA15-001 

Air Bag Inflator Rupture 

__________________________________ 

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AGREEMENT 

 This Agreement is entered into between the National Highway Traffic Safety 

Administration (“NHTSA” or “the Agency”), an operating administration of the U.S. 

Department of Transportation, and Volkswagen Group of America, Inc. (“VW”) to address the 

recall of VW’s vehicles equipped with Takata SDI-D air bag inflators. 

 WHEREAS, the parties have reviewed findings from various sources, including but not 

limited to a study from TK Global (the successor to TK Holdings, Inc.), on the safety and service 

life of desiccated Takata air bag inflators. 

 WHEREAS, in consultation with NHTSA regarding the Agency’s evaluation of such 

sources, and out of an abundance of caution, VW agrees to recall certain vehicles specified 

herein that contain SDI-D phase-stabilized ammonium nitrate (“PSAN”) air bag inflators, which 

are desiccated inflators containing 2004 propellant. 

 NOW THEREFORE, the parties set forth the terms under which they have agreed to a 

risk-based schedule for recalling vehicles equipped with SDI-D inflators containing 2004 

propellant. 

 
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I. Legal Authority 

1. NHTSA and VW make this agreement, in light of NHTSA’s authority under the 

National Traffic and Motor Vehicle Safety Act of 1966, as amended and recodified (the “Safety 

Act”), 49 U.S.C. Chapter 301, as delegated by the Secretary of Transportation, 49 C.F.R. §§ 

1.95, 501.2, to inspect and investigate, 49 U.S.C. § 30166(b)(l), to ensure that vehicles and 

equipment containing safety-related defects are recalled, 49 U.S.C. §§ 30118-30120, to ensure 

the adequacy of recalls, 49 U.S.C. § 30120(c), to accelerate remedy programs, 49 U.S.C. § 

30120(c)(3), and to require any person to file reports or answers to specific questions, 49 U.S.C. 

§ 30166(g).

II. Terms of Agreement 

2. VW agrees to file three Defect Information Reports (“DIRs”), pursuant to 49 

C.F.R. Part 573, as set forth in the following schedule: 

DIR Deadline Description of DIR Filing Commitment1 

December 31, 2020 All Model Year 2012-2014 vehicles containing SDI-D inflators 

installed in the vehicles as original equipment 

January 1, 2023 All Model Year 2015-2016 vehicles containing SDI-D inflators 

installed in the vehicles as original equipment 

January 1, 2025 All other vehicles of any Model Year containing SDI-D inflators 

The filing of DIRs by VW trigger its obligations to conduct recalls under 49 U.S.C. §§ 

30118-20 and 49 C.F.R. Parts 573 and 577. 

3. To the maximum extent possible, VW agrees to take measures necessary to 

acquire in a reasonably expeditious manner and sustain its supply of remedy parts, to enable it to 

provide those remedy parts to dealers to remedy vehicles after each DIR launch without delay or 

disruption. To the extent necessary, VW agrees to allocate remedy parts based on risk, 

considering vehicle age and geographic location. 



1

 A complete list of the vehicles in each DIR group is attached hereto as Annex A. 
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4. A modification or amendment to this Agreement, including the recalls and dates 

specified in Paragraph 2 (“Covered DIRs”), is subject to the agreement of both parties. 

Notwithstanding that: 

a. VW agrees to consult with NHTSA regarding the potential acceleration of the 

Covered DIRs by filing them at an earlier date, if VW determines that it has a 

sufficient supply of remedy parts available to do so without negatively affecting 

supply for vehicles already under recall. 

b. VW may present additional test data, analysis, information regarding supply 

shortages, or other relevant and appropriate evidence to NHTSA to modify or 

amend a Covered DIR or defer certain vehicles to a later Covered DIR filing date. 

c. The parties agree to work together in good faith if any modifications or 

amendments to this Agreement become necessary or desirable as a consequence 

of events beyond the parties’ reasonable control. 

5. VW agrees to continue to monitor its vehicles equipped with Takata SDI-D air 

bag inflators and to update NHTSA on the progress and findings of that work. To that end, VW 

agrees to submit a monitoring protocol to NHTSA, developed in consultation with NHTSA. 

6. VW acknowledges that nothing in this Agreement alters its legal obligations 

under the Safety Act and related regulations to recall vehicles when it learns they contain a 

defect and decides in good faith that the defect is related to motor vehicle safety. Should further 

monitoring, investigation, or other available information reveal an unreasonable risk to safety 

within the meaning of the Safety Act based on the occurrence of field ruptures, testing, or other 

information, VW will file a DIR (pursuant to 49 C.F.R. Part 573) earlier than the otherwise 

applicable deadline above in Paragraph 2. 
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III. Miscellaneous

7. This Agreement cannot be modified, amended, or waived except by an instrument 

in writing signed by the parties. 

8. Nothing in this Agreement shall be interpreted or construed in a manner 

inconsistent with, or contravening, any federal law, rule, or regulation at the time of the 

execution of this Agreement, or as amended thereafter.

9. Nothing in this Agreement relieves VW of its obligation to submit any other 

reports or satisfy any other obligations required by law.

10. Should any condition or other provision contained herein be held invalid, void, or 

illegal by any court of competent jurisdiction, it shall be deemed severable from the remainder of 

this Agreement and shall in no way affect, impair, or invalidate any other provision of this 

Agreement.

11. This Agreement shall be effective upon execution by both VW and NHTSA. Any 

breach of the obligations under this Agreement may, at NHTSA’s option, be immediately 

enforceable in any United States District Court. VW agrees that it will not raise any objection as 

to venue. 

12. This Agreement has been negotiated and prepared by both VW and NHTSA. If 

any of the Agreement’s provisions require a court’s interpretation, no ambiguity found in this 

Agreement shall be construed against the drafter.

13. The parties who are the signatories to this Agreement have the legal authority to 

enter into this Agreement, and each party has authorized its undersigned to execute this 

Agreement on its behalf.
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14. This Agreement may be executed in counterparts, each of which shall be 

considered effective as an original signature.

15. This Agreement is a fully integrated agreement and shall in all respects be 

interpreted, enforced, and governed under the federal law of the United States. This Agreement 

sets forth the entire agreement between the parties with regard to the subject matter hereof. 

There are no promises, agreements, or conditions, express or implied, other than those set forth 

in this Agreement.

 NATIONAL HIGHWAY TRAFFIC SAFETY 

ADMINISTRATION, 

U.S. DEPARTMENT OF TRANSPORTATION 

Dated: _______________ By: _________________________________ 

James C. Owens 

Deputy Administrator 

Dated: _______________ By: _________________________________ 

Jonathan C. Morrison 

Chief Counsel 

Dated: _______________ By: _________________________________ 

Kerry Kolodziej 

Assistant Chief Counsel 

for Litigation and Enforcement 

May 5, 2020 James Owens

Digitally signed by James Owens 

DN: cn=James Owens, o, ou=NHTSA, 

email=james.owens@dot.gov, c=US 

Date: 2020.05.05 09:25:52 -04'00'

May 5, 2020

JONATHAN CHARLES 

MORRISON

Digitally signed by JONATHAN 

CHARLES MORRISON 

Date: 2020.05.05 09:18:43 -04'00'

May 5, 2020

KERRY E 

KOLODZIEJ

Digitally signed by KERRY E 

KOLODZIEJ

Date: 2020.05.05 09:07:28 -04'00'
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Dated: _______________ By: _________________________________ 

Stephen Hench 

Trial Attorney 

VOLKSWAGEN GROUP OF AMERICA, INC. 

Dated: _______________ By: _________________________________ 

Christopher T. Sandvig 

Director, Group Customer Protection 

Dated: _______________ By: _________________________________ 

Antony J. Klapper 

Deputy General Counsel, Product Liability and 

Regulatory 

Dated: _______________ By: _________________________________ 

Brian J. Kapatkin 

Corporate Counsel, Product Regulatory 

 

May 5, 2020

Digitally signed by STEPHEN 

HENCH

Date: 2020.05.05 08:56:27 -04'00'

April 30, 2020

Sandvig Christopher 

VWPKI

930CBB999E53339A

Digitally signed by Sandvig Christopher 

VWPKI 930CBB999E53339A 

DN: dc=vwg, cn=Sandvig Christopher 

VWPKI 930CBB999E53339A 

Date: 2020.04.30 14:20:47 -04'00'

April 30, 2020

Klapper Antony VWPKI 

A57DB1BAB1F6DD4E

Digitally signed by Klapper Antony 

VWPKI A57DB1BAB1F6DD4E 

Date: 2020.04.30 13:06:39 -04'00'

April 30, 2020 Brian Kapatkin Digitally signed by Brian Kapatkin 

Date: 2020.04.30 09:03:32 -04'00'
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ANNEX A 

DIR Group 1 – Deadline December 31, 2020 

2012-2014 VW Beetle 

2012-2014 VW Beetle Convertible 

DIR Group 2 – Deadline January 1, 2023 

2015-2016 VW Beetle 

2015-2016 VW Beetle Convertible 

DIR Group 3 – Deadline January 1, 2025 

2017-2019 VW Beetle 

2017-2019 VW Beetle Convertible 

2011-2014 VW Passat2



2 Only such vehicles that received SDI-D inflators as remedy parts in earlier Takata-related recalls.