Based in Tokyo, Takata Corporation has agreed that its subsidiary in the United States, TK Holdings, will be paying a $70 million fine among other pledges as part of the Consent Order Agreement signed with the National Highway Traffic Safety Administration (NHTSA).
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To this end, Takata pledges that it will continue to run safety tests, replace inflators, improve general safety procedures, and cooperate with automakers all over the world as well with the NHTSA to make things right again.
The $70 million civil penalty will be paid in six installments and completed by October 2020, while the company may face further penalties of up to $130 million if it fails several agreements or obligations under the Consent Order.
The company agrees to phase out the manufacture and sale of non-desiccated Phase Stabilized Ammonium Nitrate (PSAN) Takata inflators by 2018, and will not be part of any new contracts to supply PSAN inflators, among other obligations the company has consented to.
“We deeply regret the circumstances that led to this Consent Order,” said Shigehisa Takada, Chairman & CEO of Takata. “This settlement is an important step forward for Takata that will enable us to focus on rebuilding the trust of automakers, regulators and the driving public.
“Today’s announcement also marks a pivot point for Takata by setting out an orderly transition to the next generation of inflators. We will comply with all aspects of the settlement and are committed to being part of the solution.”
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Headquartered in Tokyo with 58 facilities in 21 countries, Takata is a leading global innovator and supplier of automotive safety systems; including airbag systems, seat belts, steering wheels, electronics, sensors, and child restraint systems, and supplies all major automotive manufacturers in the world. The company has over 48, 775 employees worldwide.