Takata has already settled with the National Highway Traffic Safety Administration, paying more than $200 million in fines. “Takata deeply regrets the circumstances that have led to this situation and remains fully committed to being part of the solution”.
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In the emails, the 3 executives are allegedly referred to submitting false reports of test data to all the automakers that were using their products, specifically the air bags, even after initial reports that the inflators were failing and injuring people. This settlement fully resolves the DOJ investigation into Takata and all of its subsidiaries and affiliates, including Takata’s USA subsidiary, TK Holdings (“TKH”). Justice Department officials said they would work with Japanese authorities to secure the individuals’ extradition to the U.S. The agency said it is possible other criminal charges will be filed against individuals in the future.
Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi, all of Japan, were indicted on charges related to deceiving automobile companies about known defects to continue selling products they knew failed safety tests.
McQuaid said all three defendants are no longer employed by Takata and live in Japan to the best of her knowledge.
The indictments on six counts of conspiracy and wire fraud were unsealed Friday, just hours ahead of a Justice Department news conference to announce a corporate penalty against the Japanese company.
On Thursday, Ford announced that it is adding more than 816,000 vehicles in North America to the growing Takata airbag inflator recall.
“Takata has admitted to a scheme to defraud its customers by manipulating data regarding the performance of its airbag inflators”, Barbara l. McQuade, US Attorney. Takata blames two human errors during production: A worker forgot to turn on the switch for a system weeding out defective products, and parts were improperly stored, which exposed them to humidity. “Takata’s deficiency in both areas has impacted tens of millions of cars, caused death and suffering in multiple markets, and will ultimately cost the industry billions of dollars to address”.
As per reports, Takata plans to seek bankruptcy protection this year to clear the way for a takeover.
Takata’s board approved the settlement with the department, according to Reuters. That incident sparked a new sense of urgency among USA regulators and automakers, who subsequently accelerated the pace of recalls. Nearly 70 million air bag inflators are or will be under recall by 2019, in what some regulators have called the largest and most complex auto safety recall in USA history. Most major auto manufacturers have been forced to recall vehicles because of the defect, including General Motors Co, Honda Motor Co, BMW AG and Tesla Motors Inc, in what has been described as the largest-ever auto safety recall. This isn’t the first settlement with USA auto safety regulators for Takata.
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The defect has been linked to 11 U.S. fatalities and 15 worldwide.
