Takata Pleads Guilty of Falsifying Data on Airbag Shrapnel

Posted on 17 January 2017 by Ken Zino

AutoInformed.com on deadly Takata airbag inflatorsTakata has reached an agreement with the U.S. Department of Justice – DOJ – whereby it will plead guilty for falsifying airbag testing data and reports that were provided to automakers. One billion dollars is the sum of the plea bargain  – and it looks like a real bargain to us, given the severity of the charges – over deadly airbag shrapnel responsible for at least 15 deaths and hundreds of injuries.

It will pay a criminal fine of $25 million and establish a $125 million restitution fund for individuals who suffered or will suffer personal injury caused by the malfunction of a Takata airbag inflator, and who have not already resolved their claims. Three Takata executives face criminal charges.

In addition, Takata will establish an $850 million fund for automakers who received false testing data and reports, or who have purchased airbag inflators from Takata containing phase-stabilized ammonium nitrate. Takata also agreed to improve its corporate compliance program and appoint an independent monitor, who will report to the DOJ for three years while monitoring Takata’s compliance with its legal and ethical obligations.

Takata previously acknowledged issues related to the integrity of Takata’s inflator validation testing and reporting of test results to its customers. Its actions have effectively ruined the company. Since February 2016, Takata’s Steering Committee and its financial and legal advisors have been trying to get new investment for Takata. Takata needs more money to address Takata’s financial and operational issues and to resolve its inflator issues with its automotive customers.

This settlement ends the criminal DOJ investigation into Takata and all its subsidiaries and affiliates, including Takata’s U.S. subsidiary, TK Holdings (“TKH”).

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About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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2 Responses to Takata Pleads Guilty of Falsifying Data on Airbag Shrapnel

  1. Pingback: Deadly Takata Airbags

  2. Pingback: Honda Finally Begins Last Takata Airbag Inflator Recalls | AutoInformed

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