Company - - Dec 29,2016
Japanese air bags manufacturer, Takata, could possibly settle criminal charges that have been imposed on the company for 11 deaths in the US due to faulty air bags.
According to sources, Takata is finding a way out to fix the criminal charges with the U.S. Department of Justice. The popular air bag manufacturer is aiming to settle the matter before the Obama administration exits the office next month.
This negotiation news has impacted Takata’s shares that have risen by 6%.
There are strong speculations that, for a certain part of the settlement Takata would be pleading guilty to criminal immorality. Moreover, the Justice Department has investigated if Takata has hidden any sort of information from the safety regulators or issued ambiguous statements connected to the dangers of the manufactured air bags.
It is also reported that the exact amount which Takata pays for the settlement might be less than $1 billion and would be paid over a period of several years. But no comments have been issued by both DoJ and Takata Corporation.
The plans for settlement have been running since months between Takata and the United States DoJ. Till now, there is no confirmation whether the talks will conclude by January 20, when president Obama leaves the office.
The faulty air bag inflators manufactured by Takata have been involved in 16 deaths worldwide, out of which 11 are reported from the US. The inflators can blast with excessive force which eventually pushes metal shrapnel inside trucks and cars.
Safety regulators have stated that the recalls would directly affect about 42 million US vehicles which possess Takata air bag inflators; making this event the largest safety recall in the history of the nation.
In November 2015, Takata Corporation agreed on a fine worth $70 million for safety violations; but there are further scares of facing deferred penalties close to $130 million under a NHTSA settlement for extended violations.