Takata Corp. Eyes Settlements on Lawsuits Against Defective Airbags
Jan 06, 2017 08:29 AM EST
After a controversial few months, the Takata Corporation may finally settle with federal agencies that want to prosecute the business entity for alleged criminal wrongdoing for the Takata defective airbags controversy. The Japanese automotive company was the subject of a federal review after a considerable number of deaths from car accidents in the United States have been linked to substandard Takata airbags.
According to the Wall Street Journal, the parties involved with negotiations, including the U.S. Justice Department and the automotive company's lawyers, are nearing agreement and the terms will soon be publicized early next year. It can be remembered that the Takata defective airbags issue caused the biggest car recall in U.S. history. Forty million vehicles across 12 brands have already been recalled because of the defective airbags.
Last month, Fortune reported safety regulators in the United States have found at least 16 deaths all over the world, with most of the risk coming from the 2001 Honda Civic. Honda Motors has already made various steps to make home visits to owners of the Honda models that were affected by the Takata defective airbags fiasco in the hopes of averting more tragedy.
The annual report for 2016 of the Takata corporation will be released in the second half of next year. If the company will follow the date of the release of the annual reports in the past two years, it might be available by August 31. The Lawyer Herald will be posting more news and updates on the Takata defective airbags in the coming weeks.
Will the controversy involving the Takata defective airbags escalate to a full-blown judicial issue for the Japanese manufacturer? Will controversy perhaps cause the bankruptcy of the company? Fire away in the Lawyer Herald comments section. Meanwhile, you can watch a Bloomberg news clip on the Takata defective airbags in the video below.