Takata’s $1bn settlement seen removing hurdle in company’s sale
The eventual buyer will have to ensure a stable supply of replacement parts even as uncertainty surrounds its exposure to future liabilities
Detroit/Southfield/ Tokyo — Takata’s agreement to pay $1bn to settle a criminal investigation removes a hurdle to the airbag maker’s sale, which the company needs to continue operations and complete the biggest product recall in automotive history. The Tokyo-based company admitted to hiding the deadly risks of its airbags for about 15 years and agreed to plead guilty to one criminal charge in the settlement, according to court papers. Separately, US prosecutors charged three former Takata executives for their alleged roles in hiding the risks since 2000. The faulty airbags have been linked to at least 17 deaths worldwide. Takata faces a recall that is expected to cover more than 100-million airbags. Due diligence by bidders, including Autoliv and Key Safety Systems, had to be extended in part because of the difficulty in calculating the potential liabilities, people with knowledge of the talks said in December. The eventual acquirer would have to ensure a stable supply of replacemen...
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