Company - - Jan 18,2017
Japanese auto parts maker, Takata, wishes to rest the scandal involving deadly air bags by accepting a criminal guilty plea and fine of $1 billion.
On Friday, American officials said that Takata had agreed to plead guilty to charges based on wire fraud for offering false data and would be paying a fine of $1 billion. Also, three Takata executives where charged for fabricating test data to hide a potentially fatal airbag defect.
The guilty plea will hamper the company's ability to protect itself against lawsuits brought by consumers and shareholders. Moreover, the fines and costs associated with the scandal have also pressed a heavy financial toll on the company.
The company's airbags have been associated with at least 11 deaths and almost more than 180 injuries in the United States. Also, this event also led to the largest recall in the history of the automotive industry, affecting more than 40 million vehicles in the nation alone, and eroded Japan's reputation for providing safe, flawlessly manufactured products.
The settlement is expected to help Takata move ahead with a slow effort to secure a much-needed financial aid. The company's crippled share price has risen by two-thirds since the news of the deal was declared late last month.
Yoshio Tsukuda, the founder of the Tsukuda Mobility Research Institute said, "This puts Takata in a position to regain momentum".
News regarding the sale of the financially staggered company is also quite active. In a reversal for Japan, Takata's new owners might be from abroad, underlining a change in the country's once-opposed attitude towards outside buyers.
The list of probable buyers includes the Swedish car parts firm Autoliv; Key Safety Systems, American subsidiary of Ningbo Joyson Electronic Corporation of China and Flex-n-Gate, maker of bumpers and other car components owned by Pakistani-American billionaire Shahid Khan.