Takata appears eager to settle DoJ probe before Obama leaves office

Takata’s inflator for airbags affect 42 million vehicles in the U.S. alone. This will make it the largest ever recall in U.S. history.

Japanese airbag manufacturer Takata whose defective air bags have been linked to 11 deaths in the United States, have now responded to a criminal U.S. DoJ investigation stating that it would like to settle the case before U.S. President Barrack Obama leaves office next month, said a source who is briedfed on the on-going talks.

Part of the settlement will include Takata accepting its criminal misconduct.

The U.S. Justice Department had investigated whether Takata hid information from safety regulators and whether it issued misleading statements regarding the dangers posed by its airbags.

According to the source, the deal will most likely include a monitor to ensure that Takata is complying with the terms of the agreement.

Earlier, WSJ had reported citing people familiar with the matter at hand that the settlement amount could touch as much as $1 billion and that the matter could be dissolved by early January.

A source has clarified that the exact amount Takata is likely to pay could be considerably less than $1 billion. Further, that amount could be paid across several years.

Both the DoJ and Takata declined requests for comment.

The source also mentioned that there is no iron clad guarantee that the settlement will wrap up before January 20, when Obama is set to leave office.

As per regulators, Takata’s airbag inflators affect nearly 42 million U.S. vehicles which will make this the largest ever safety recall in the U.S.

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Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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