Takata will pay $1 billion for failing to inform regulators about its defective airbags.Automotive supplier Takata has a agreed to pay a $1 billion fine to the U.S. Justice Department for dragging its feet on a safety recall involving millions of defective airbags, a new report finds.According to Reuters, Takata will plead guilty on Friday to charges of wire fraud charges, or providing false test data to U.S. regulators. As part of that plea agreement, the Japanese supplier will pay a $1 billion fine.
The bulk of that money, $850 million, will be used to compensate automakers for losses stemming from the wide-spread airbag recall. Victims of the defective airbags will be awarded $125 million while the remaining $25 million will go toward a criminal fine.
In 2015 Takata admitted that it provided the National Highway Traffic Safety Administration as well as automakers with "selective, incomplete or inaccurate data" regarding the safety of its airbags. Takata has already paid $70 million in fines because it didn't report the airbag issue in a timely fashion.
So far Takata's faulty airbags have been linked to 16 worldwide deaths, including 11 in the United States. Takata's recall in the U.S. alone could eventually include 42 million vehicles.