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CARFAX: MILLIONS OF U.S. VEHICLES AT RISK OF GETTING COUNTERFEIT AIRBAGS

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Nearly 2 million vehicles are back on U.S. roads after airbag deployments over the last two years, potentially increasing the risk of counterfeit airbags being installed, according to CARFAX data.

The National Highway Traffic Safety Administration (NHTSA) highlights the dangers of counterfeit airbags, noting they have resulted in 3 deaths and 2 severe injuries in the past nine months.

Ten states have reported over 40,000 such vehicles, with Texas leading at 206,000. Consumers are urged to verify the history of used vehicles and ensure airbag replacements are genuine.

NHTSA advises using trusted, reputable repair shops and checking Vehicle History Reports on CARFAX.com to mitigate risks.

Positive
  • Nearly 2 million vehicles were repaired and returned to the road in the last two years, indicating a significant level of vehicle reconditioning activity.
Negative
  • The risk of counterfeit airbags poses a severe safety threat, leading to 3 deaths and 2 severe injuries in the last nine months.
  • The prevalence of counterfeit airbags is uncertain, creating a potential risk for vehicle owners.
  • Ten states report significant numbers of vehicles potentially at risk, increasing regional safety concerns.

Insights

The issue of counterfeit airbags in vehicles presents a significant safety concern. A counterfeit airbag may not deploy correctly during a crash, which can result in severe injuries or fatalities. From a technical standpoint, the presence of these substandard airbags indicates a gap in regulatory oversight and compliance within certain sectors of the automotive repair industry.

Furthermore, the sheer number of vehicles reported to have been back on the road after airbag deployment — nearly 2 million — suggests a high-risk factor for both current and future vehicle owners. The National Highway Traffic Safety Administration (NHTSA) and law enforcement's inability to quantify the number of counterfeit airbags further underscores the issue's complexity, indicating underlying systemic weaknesses in tracking and certifying aftermarket parts.

For investors, the takeaway is that increased scrutiny and regulatory actions might be on the horizon, impacting companies involved in vehicle repairs and parts distribution. It also highlights a potential growth area for businesses providing certified, genuine replacement parts and those focusing on advanced safety technologies.

From a market perspective, the concern over counterfeit airbags brings attention to the demand for vehicle history reporting services like CARFAX. As consumer awareness increases and more people seek to ensure the safety of used vehicles, services offering detailed vehicle histories and certification will likely see a rise in adoption. This could translate into increased revenue for companies offering these services.

Additionally, this situation highlights a critical element of consumer behavior — the increasing importance placed on vehicle safety. Companies that can effectively market their commitment to genuine parts and rigorous safety standards will likely build stronger consumer trust and loyalty. Investors should consider how well-positioned companies are to address these safety concerns and capitalize on the growing demand for transparency in vehicle history and parts authenticity.

Legally, the issue of counterfeit airbags opens the door to liability and regulatory challenges. Car manufacturers, repair shops and parts distributors could face significant legal repercussions if found complicit in installing counterfeit airbags. This potential for litigation could lead to substantial financial penalties, reputational damage and increased regulatory scrutiny.

For investors, understanding a company's exposure to these risks is crucial. Companies with robust compliance programs, strong relationships with certified suppliers and transparent business practices are likely to be more resilient. This situation also underscores the importance of due diligence in assessing a company's legal and regulatory risk profile before making investment decisions.

Nearly 2 Million Vehicles Back on Road After Airbag Deployments Just in Last 2 Years

CENTREVILLE, Va., July 10, 2024 /PRNewswire/ -- Nearly 2 million vehicles are back on U.S. roads after they were involved in an accident where an airbag deployed over the last 2 years, CARFAX data shows. Each of those vehicles represents an opportunity for a scammer to install a counterfeit airbag as a replacement. Those counterfeit airbags put owners at risk, according to the National Highway Traffic Safety Administration (NHTSA).

Although instances of that happening are believed to be rare, law enforcement officials agree that no one knows for sure how many substandard airbags are in cars today. But the results can be tragic: There have been 3 deaths and 2 severe injuries just in the last nine months because of these airbags, NHTSA reports.

Ten states have more than 40,000 vehicles back on the road after an airbag deployment:

State

No. of Vehicles

Texas

206,000

Florida

106,000

N.C.

100,000

Michigan

81,000

Georgia

74,000

Ohio

59,000

California

56,000

Tennessee

47,000

Illinois

43,000

Virginia

41,000

"If consumers own or are considering the purchase of a used vehicle, NHTSA urges them to learn their vehicle's history and ensure their vehicle has genuine air bag inflators," the agency said in a release this week. "If their vehicle has one of these inadequate replacement parts, it could kill or critically injure them in a crash."

Consumers can check – for free – Vehicle History Reports for airbag deployments in every used car listed on CARFAX.com. Additionally, prospective buyers should have a trusted mechanic check out any replacement airbags before they buy a used vehicle.

NHTSA and federal law enforcement officials say there's no way to know for sure just how many counterfeit airbags are being installed in U.S. cars today. A new car today can have up to 10-15 airbags installed. 

Consumers who wind up in an accident where an airbag deploys should take their vehicle to a reputable repair shop, preferably one with vehicle manufacturer certification and high ratings from consumers. 

Editor's note: Interviews with Patrick Olsen, CARFAX Editor-in-Chief, are available at any time. Please contact us at PublicRelations@carfax.com.

About CARFAX

CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Used Car ListingsCARFAX Car CareCARFAX History-Based Value and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.

S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/carfax-millions-of-us-vehicles-at-risk-of-getting-counterfeit-airbags-302193768.html

SOURCE CARFAX

FAQ

How many vehicles are back on U.S. roads after airbag deployments in the last two years?

Nearly 2 million vehicles are back on U.S. roads after airbag deployments in the last two years, according to CARFAX data.

What is the risk associated with counterfeit airbags in vehicles?

Counterfeit airbags pose a severe safety risk, resulting in 3 deaths and 2 severe injuries in the past nine months, as reported by NHTSA.

Which state has the highest number of vehicles with potential counterfeit airbag risks?

Texas has the highest number, with 206,000 vehicles back on the road after airbag deployments.

How can consumers verify the safety of airbags in used cars?

Consumers can check Vehicle History Reports for airbag deployments on CARFAX.com and have a trusted mechanic inspect replacement airbags before purchasing a used car.

What advice does NHTSA give to consumers about counterfeit airbags?

NHTSA advises consumers to verify their vehicle's history, ensure genuine airbag inflators, and use reputable repair shops for airbag replacements.

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