{"id":690,"date":"2017-05-31T09:00:40","date_gmt":"2017-05-31T08:00:40","guid":{"rendered":"https:\/\/www.groupactionlawyers.co.uk\/blog\/?p=690"},"modified":"2017-05-30T09:30:15","modified_gmt":"2017-05-30T08:30:15","slug":"takata-pleads-guilty-over-air-bag-scandal-agree-pay-1-billion-fines","status":"publish","type":"post","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-pleads-guilty-over-air-bag-scandal-agree-pay-1-billion-fines","title":{"rendered":"Takata pleads guilty over momentous air bag scandal and have agreed to pay $1 billion in fines."},"content":{"rendered":"<p>It seems the Takata airbag scandal is finally drawing to a close as the auto parts manufacturer, Takata Corp, has pleaded guilty to fraud in hiding the dangerous defect.<\/p>\n<p>Based in Japan, the company found themselves in hot water as 16 deaths were connected to lethal Takata airbags that exploded inside car cabins. Whilst the majority of the fatalities were in the U.S., Takata airbags are used worldwide.<br \/>\n<!--more--><\/p>\n<h2>The biggest recall in auto history<\/h2>\n<p>Takata was once a highly celebrated auto parts maker, supplying a third of all cars globally with their signature airbags. After the scandal came to light, concerns from the public erupted, fearing their cars also contained defective airbags that may explode. It ignited that largest recall in U.S. auto history. Around 42 million vehicles across 19 car makers were involved in the recall and over 100 million individual inflators have been recalled.<\/p>\n<p>During the earlier investigations, company officials and engineers were revealed to have known about the defects, and in fact not only concealed the evidence, but they actively encouraged other employees to do so in emails saying &#8220;happy manipulating.&#8221;<\/p>\n<p>This is coming from a company that is supposed to protect human safety&#8230;<\/p>\n<h3>Guilty plea<\/h3>\n<p>Takata admitted these allegations, confirming that it was aware, and hid evidence that millions of their airbags contained defective inflators that could explode; shooting shards of sharp metal into the car cabin. In addition to the 16 deaths, over 180 injuries have been reported worldwide which is an astronomical amount.<\/p>\n<p>Toichiro Nomura, chief financial officer for Takata, expressed his regret on behalf of the company, calling their behaviour &#8220;completely unacceptable&#8221;. As with many cases where companies were deceptive in hiding their wrongdoing, this may be another case of: &#8220;you&#8217;re only sorry you got caught&#8221;.<\/p>\n<p>The hefty $1 billion fine (around \u00a3775 million) includes:<\/p>\n<div class=\"well\">\n<ul>\n<li>$850 million for car makers;<\/li>\n<li>$125 million for the victims and their families for the deaths and injuries caused;<\/li>\n<li>$25 million to the U.S government as a financial penalty.<\/li>\n<\/ul>\n<\/div>\n<h3>Discounts on fines<\/h2>\n<p>Takata received an incredible discount for the government penalty. Under the usual rules, the car parts maker would have been looking at a $1.5 billion fine just as a financial penalty to the U.S government. However, the judge on the case took into consideration that such a penalty would have bankrupted the company. It is more important that the victims of the scandal get paid rather than shutting the company down because they deserve it.<\/p>\n<h3>Other companies involved<\/h3>\n<p>The auto companies receiving the majority of the billion dollar fine may need to use the money to fix the recalled vehicles, all the while attempting to restore their reputations. Whilst they have been accused of knowing about the defects and using them anyway, the auto makers have stated that they too were deceived by Takata.<\/p>\n<p>In 2009 when one inflator exploded, a car maker described the issue as: <\/p>\n<blockquote><p><strong><em>&#8220;&#8230;one in which a passenger protection device was transformed into a killing weapon.&#8221;<\/em><\/strong><\/p><\/blockquote>\n<p>Takata&#8217;s pleadings seem to support the car makers defence by revealing their deception was carried out through: <\/p>\n<blockquote><p><strong><em>&#8220;&#8230;submission of false and fraudulent reports and other information that concealed the truth and accurate test results.&#8221;<\/em><\/strong><\/p><\/blockquote>\n<p>However, Honda, Toyota, Ford, Nissan and BMW may be implicated in the pleadings for choosing to use Takata airbags to save money when experts had raised objections to the inflators&#8217; safety.\u00a0Could the companies that narrowly escaped the recent emissions scandal be in deep water?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems the Takata airbag scandal is finally drawing to a close as the auto parts manufacturer, Takata Corp, has pleaded guilty to fraud in hiding the dangerous defect. Based in Japan, the company found themselves in hot water as 16 deaths were connected to lethal Takata airbags that exploded inside car cabins. Whilst the &hellip; <a href=\"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-pleads-guilty-over-air-bag-scandal-agree-pay-1-billion-fines\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Takata pleads guilty over momentous air bag scandal and have agreed to pay $1 billion in fines.<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[13],"tags":[8],"class_list":["post-690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive","tag-recalls"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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to plead guilty for the airbag defect scandal","author":"Admin","date":"2nd March 2017","format":false,"excerpt":"Major auto part maker Takata is set to plead guilty and pay a $1 billion settlement in a plea agreement over an airbag fault scandal. It has been called one of the \"largest and most complex safety recall\" cases in history, with defects linked to 16 deaths worldwide, and a\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1019,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/defective-takata-airbag-may-reportedly-involved-traffic-fatality","url_meta":{"origin":690,"position":1},"title":"Defective Takata airbag may reportedly be involved in traffic fatality","author":"Admin","date":"16th October 2017","format":false,"excerpt":"We've been covering the Takata airbag scandal for some time now, and news has emerged of another potential fatality that may be directly linked to the defective airbags. A woman reportedly died from injuries sustained in a car collision in July this year, which involved a Honda Accord 2002 said\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":892,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-files-bankruptcy-exploding-airbag-scandal","url_meta":{"origin":690,"position":2},"title":"Takata files for bankruptcy as a result of exploding airbag scandal","author":"Admin","date":"18th August 2017","format":false,"excerpt":"The Takata airbag recall is one of the biggest automotive recalls in history. The company started producing airbag inflators in the late 1990s, and around the year 2000, Takata discovered some of their airbag inflators weren't functioning properly, and even found some had erupted during tests. The first recorded incident\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":440,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-faulty-airbags-cost-1bn-us-settlement","url_meta":{"origin":690,"position":3},"title":"Takata&#8217;s faulty airbags looking to cost $1bn (\u00a3812m) in U.S. settlement","author":"Admin","date":"5th January 2017","format":false,"excerpt":"It hasn't been a good few years for the automotive industry. First we had the Volkswagen (VW) scandal, and now Takata Corporation's huge airbag disaster; which may cost the Japanese auto suppliers up to $1 billion (\u00a3812 million) in a U.S. criminal settlement. Takata has been manufacturing airbags for several\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"us settlement","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":484,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/exploding-airbags-case-nears-settlement-with-us-federal-prosecutors","url_meta":{"origin":690,"position":4},"title":"Company responsible for exploding airbags is close to settlement with federal prosecutors in the U.S.","author":"Admin","date":"18th January 2017","format":false,"excerpt":"Auto-parts maker Takata is reported to be nearing a settlement for supplying allegedly dangerous airbags that can explode and shoot shards of metal in to the vehicle cabin. It has been revealed that Takata had been making the potentially defective airbags since the early 2000s, and any attempt to unearth\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1156,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-files-bankruptcy-under-pressure-numerous-lawsuits","url_meta":{"origin":690,"position":5},"title":"Takata files for bankruptcy as it buckles under pressure of numerous lawsuits","author":"Admin","date":"8th December 2017","format":false,"excerpt":"The motor industry was shaken by revelations of Takata's dangerous airbags that have the potential to explode and shoot shards of metal into the cabin of a car. As one of the world's largest producers of airbags, its inflatable devices are used in vehicles made by Honda, Mazda, Toyota, Subaru\u2026","rel":"","context":"In &quot;Automotive&quot;","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=690"}],"version-history":[{"count":4,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/690\/revisions"}],"predecessor-version":[{"id":708,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/690\/revisions\/708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/media\/490"}],"wp:attachment":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}