Industry News: Runorpile: Takata In the Process of Working on A Settlement With Justice Department

[William Maley]

The Takata Airbag recall now stands as the largest vehicle recall ever due to how many vehicles around the world use them. In the U.S. alone, 19 auto manufacturers have recalled 49 million vehicles with the airbags that can shoot out shrapnel in the event of an accident. 11 deaths and 184 injuries in the U.S. have been linked to these airbags. Due to this, Takata has been facing numerous lawsuits and investigations. A new report says that Takata is close to closing one of those investigations.

The Wall Street Journal has learned from sources that Takata is in negotiations with the U.S. Justice Department about a possible settlement. The deal would see the Japanese supplier pleading guilty to criminal misconduct and paying a fine ranging from hundred of millions to $1 billion. The settlement could be finalized early next year, but sources say the timing could slip.

Reaching an agreement with the Justice Department would put Takata in better standing when it comes to another supplier (possibly Autoliv) taking over the company. It would also close one door in a massive scandal.

Source: Wall Street Journal (Subscription Required)

View full article

[G. David Felt]

Expect this to be in the billions, anything less is incompetence on Takata's part and a pay off to the gov.

[daves87rs]

Going to be messy, not matter how you look at it! Still amazes me just how big it is......

[Scout]

Takata may go bankrupt before they can complete the recall. Then what does everyone do?

[G. David Felt]

1 hour ago, Scout said:

Takata may go bankrupt before they can complete the recall. Then what does everyone do?

Auto companies will still be on the hook to replace them or face fines. I suspect if Takata goes bankrupt and closes down, someone else will step in to supply bags as buying back auto's will be a nightmare every auto company will want to avoid.