Takata reaches US settlement

23/02/2018

Takata reaches US settlement

BBC reports that the US arm of Japanese manufacturer Takata has reached a settlement with 44 US state attorneys-general.

The settlement includes a civil penalty of about $650m (£465.9m).

With Takata's US arm currently in bankruptcy proceedings, the penalty will not be collected with the states agreeing 'not to collect this civil penalty in order to maximize the recovery available to consumers who were the victims,' South Carolina attorney general Alan Wilson said in a statement.

Takata and its US arm, TK Holdings filed for bankruptcy last year after problems with their airbags first forced global recalls in 2007. Since then the faulty airbags have been linked to at least 12 deaths and 100 injuries worldwide.

In January, the Japanese manufacturer agreed to pay $1bn in penalties in the US for concealing dangerous defects in its exploding airbags.

It agreed to pay a $25m fine, $125m to people injured by the airbags, and $850m to carmakers that used them.

The firm also pleaded guilty to a single criminal charge.

The faulty airbags have been the cause of the biggest safety recall in automotive history with most major automakers affected.

The US settlement could pave the way for TK Holdings to be sold to rival Key Safety Systems.