The legal case surrounding the world’s biggest automotive safety recall caused by Takata’s airbag inflators is reaching a conclusion. Reuters reports that the Japanese company has agreed to plead guilty to criminal wrongdoing and to pay US$1 billion to resolve a US Justice Department investigation into the issue.
The deal was announced last week, hours after prosecutors in Detroit charged three former senior Takata executives with falsifying test results to conceal the inflator defect, which has been linked to at least 16 deaths worldwide, including several cases in Malaysia.
Takata will pay a $25 million fine, $125 million in a victim compensation fund, including for future incidents, and $850 million to compensate automakers for massive recall costs, the US Justice Department said. To date, the recalls have affected 19 carmakers.
The auto parts supplier will also be required to make significant reforms and be on probation and under the oversight of an independent monitor for three years. The settlement must still be approved by a federal judge in Detroit. This is a different deal from the one on 2015, when Takata admitted in a $70 million settlement with US auto safety regulators that it was aware of a defect in its airbag inflators, but did not issue a recall.
“Reaching this agreement is a major step toward resolving the airbag inflator issue and a key milestone in the ongoing process to secure investment in Takata,” said Shigehisa Takada, chairman and CEO of the auto parts supplier. The company “deeply regrets the circumstances that have led to this situation and remains fully committed to being part of the solution,” he added.
Separately, a federal grand jury indicted three longtime Takata executives after a more than two-year US criminal probe. Shinichi Tanaka, Hideo Nakajima, and Tsuneo Chikaraishi were indicted on wire fraud and conspiracy charges for allegedly convincing automakers to buy “faulty, inferior, non-performing, non-compliant or dangerous inflators” through false reports.”
The Justice Department said the three Japanese citizens were suspended in 2015 and are not currently working for Takata. The six-count indictment said they knew around 2000 that the inflators were not performing to automakers specifications and were failing during testing, but they provided false test reports to the car companies.
In the US, Takata’s faulty airbag inflators have been linked to 11 deaths and 184 injuries. There have been several deaths related to the company’s rupturing inflators in Malaysia too – all in Hondas – and Honda Malaysia has put in considerable effort to create awareness on the matter, urging owners of affected vehicles to bring their car in for part replacement, and making it as convenient as possible for them to do so.
As of December 2016, Honda Malaysia says that it has only managed to replace 71% of affected driver front airbag inflators (stock availability at 100%), with a large number of affected cars yet to respond to the recall. The completion ratio for passenger airbag inflator replacements stood at 50% as of end-November. Please respond already, if your car is affected.
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Takata pays US1Billion to Americans cause their lives matter more then Malaysian lives? Here not a single cents in fine…..
Malaysian consumer rights is a MYTH
Life dieded, but only need to pay deadak. Only in foreign overlord land.
All hail foreign overlords!
Because in bolehland pipu worship overlord cars. They even said better died in jepunis cars than saved in protons
Dats so true. My fren says that statement is 2nd most favorite epithet for his eternal customers nowadays.
I’m surprise that Takata did not file for Chapter 11 to declare Bankruptcy in order to not pay for their wrong but instead pay for it.
The company “deeply regrets the circumstances that have led to this situation & remains fully committed to being part of the solution said Takata. That is the mark of a true Gentlemen.
It just goes to show Takata take its mistake like a true corporate with responsibilities. Not many corporation willing to do what they are doing. I’m expecting many dislike on the way. Cheers anyhow
No. In US, filing for chapter 11 dun mean it absolves the kompeni from being fined. US Gov can seize assets and sell whole kompeni or piecemeal to recover up till the fine value. If still not enuff, can force Interpol to seize offshore assets and transfer to US Gov.
Deswai US Gov force outsiders if wanna do business in US, must setup base in US, just so can recover in case shiet happens.
I hate 2 say but U are Right on this. It just go 2 show U can put up a good response/argument when U take some effort to reply. Syabas john. Cheers.
I knows becoz I reads. U can too if u try.
Rather get a solid German car with safety and performance than buying one of these Japanese cars. Toyota famous for selling overpriced cars without safety features. And when they do, it comes with faulty airbags.
Bodo kunta even german cars come with those killer airbags
Wait. Din u just bashed a solid Jerman brand in the previous article below this?
Why Japanese Cars still the best selling cars in U. S. A and around the world?
On May 27th, I received a letter from UMW TOYOTA asking me to contact one of their service centres to have my Camry airbag replaced, signed by an Executive Director. I went to their service centre on July 12th to make an appointment, alas “NO STOCK”, will contact me when stock arrive. Checked again 2 months later, still “NO STOCK” . Even called their customers service centres (1-800-8-869682), same answer “NO STOCK”. upto now no one has contacted me. Come on TOYOTA, it does not have to take 8 months. I bought the Camry from this outlet/service centres, always serviced my car at this centre, yet this is the treatment. Will I buy TOYOTA again, very hard to be convinced.
$4.3 billion for the diesel case but only $1 billion for falsifying evidences on faulty airbags that has affected 50 million or so cars. This is even after there has been confirmed deaths caused by the airbags.
I’m not saying that the diesel case is right but in comparison, shouldn’t Takata be fined much more than that?
Weird world…
So true. A diesel gate that barely kill anyone was being viewed more serious than a killer airbag that had killed 16 worldwide.
So true! When it comes to human lives & safety, there is no compromise. The US should fine Takata with a heavier penalty and make it as an example for others
Honda still says no stock. How long would it take ? Honda still has no answer yet after so many weeks of chasing them.