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Takata Could Face $1 Billion Fine in U.S. for Hiding Airbag Defect
Takata Corp. is near agreement to settle U.S. charges of criminal wrongdoing for hiding data about its explosion-prone airbag inflators, sources tell The Wall Street Journal.
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Takata Corp. is near agreement to settle U.S. charges of criminal wrongdoing for hiding data about its explosion-prone airbag inflators, sources tell The Wall Street Journal.
The deal, which could be announced in January, will include a fine of as much as $1 billion and a plea of guilty to charges of criminal misconduct, according to the Journal. The newspaper says Takata is likely to pay a portion of the fine immediately and the balance over several years.
Nearly 20 carmakers are recalling about 70 million Takata inflators in the U.S. The devices can misfire when triggered by a crash, spewing metal shards at high speed into the passenger compartment. The inflators have been blamed for 11 deaths and close to 200 injuries in the U.S. alone.
The Journal notes that a settlement would help facilitate Takata’s effort to find a financial savior to take over and stabilize its airbag business.
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