Japanese auto parts maker Takata Corp. has pleaded guilty to one count of wire fraud, and agreed to pay $1 billion for concealing a defect in millions of
Japanese auto parts maker Takata Corp. has pleaded guilty to one count of wire fraud, and agreed to pay $1 billion for concealing a defect in millions of its air bag inflators.
The decision played out in a federal courtroom in Detroit on Monday, following a deal with the U. S. Justice Department.
The Wall Street Journal reports:
“Takata’s finance chief, Yoichiro Nomura, entered the guilty plea on the company’s behalf during court proceedings.
“He said actions of certain employees were ‘deeply inappropriate.’ ”
At least 11 deaths have been linked to the defective air bags.
“For over a decade, Takata lied to its customers about the safety and reliability of its ammonium nitrate-based airbag inflators,” Acting Assistant Attorney General Kenneth Blanco said in a statement.
NPR’s Sonari Glinton reported for our Newscast unit:
“The defects caused the airbags to inflate with too much force and send metal shards into the cabin of the car.
