Houston police and Homeland Security Investigations (HSI) executed a search warrant at the business on Atwell. Six people were arrested.
Eyewitness News was given extraordinary access.
Investigators say the business, Chavez Safety Airbags, was making fake airbags and reusing the parts of old ones, putting lives at risk.
Working on a tip from the auto industry, HSI special agents say they set up an undercover operation. One agent pretended to be a buyer, and the seller allegedly admitted to having fakes. Closer inspection on Thursday verified it.
"A lot of shrapnel, if it explodes, can hit someone in the face," one undercover agent said as he showed ABC13 the fake product.
A demonstration posted online by the National Transportation Safety Administration shows how dangerous a fake airbag can be. A real one can save a life. A fake one can kill.
"There can be catastrophic consequences to a faulty airbag," Roshelle Salinas, who is the Executive Vice President of the Houston Automobile Dealers Association, said. "To hear about this is extremely concerning because safety is our number one concern in any vehicle and the way they're made."
Officers and agents confiscated used airbags, recalled airbags, fake airbags, fake airbag covers, and the molds to make them. Police also found a semi-automatic rifle and receipts for tax-free transactions in the thousands.
Investigators say the business sold to small car dealers and individuals. The warehouse was full of airbags for practically every make and model.
Just last month, HSI launched an educational campaign about fake auto parts after seeing a recent increase.
"HSI works tirelessly alongside our partners to identify counterfeit auto parts being sold in the U.S. or online to U.S. consumers to prevent them from making it into your vehicles where they can present a serious safety hazard for everyone on the road," HSI Houston acting Special Agent in Charge Robert Kurtz said.
On Thursday night, HPD's Major Offenders Division was still working on criminal charges.
Salinas recommends using a certified technician when addressing any safety issues.
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