Takata expected to settle over potentially fatal exploding airbags
Tokyo — Shares in struggling auto parts maker Takata surged on Friday following a report that the company and US authorities could announce a settlement later in the day over deadly exploding airbags. The final agreement may include criminal charges and a fine of up to $1bn, Bloomberg News reported.
Takata shares closed up 16.46%, or ¥150, at ¥1,061 after having reached their maximum daily increase early in the session. The performance took gains since late last month to about 75% as investors bet on the two sides striking a deal.
Some 100-million Takata airbags have been recalled worldwide over a defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed. The problem has been linked to more than a dozen deaths worldwide and scores of injuries. US regulators have said the defect is more dangerous in southern parts of the US with warmer and more humid climates.
Nearly every major carmaker has been forced to recall vehicles because of the fault, including GM, Honda, BMW and Tesla.
In November 2015, the US National Highway Traffic Safety Administration imposed a record $200m civil fine on Takata for providing inadequate and inaccurate information to regulators about the defect.