Takata Motor Corp, the supplier of the defective airbag inflators, will appear in federal court on February 27.
Reuters reports that the Japanese company has agreed to plead guilty to a felony count of wire fraud, and will have to pay a $1 billion settlement
The large sum includes a $25 million criminal fine, $125 million for compensating current and future victims, and $850 million to automakers to trim down some of their losses after the massive recall campaigns announced all over the world.
The latest action comes about a month after three senior executives in the United States decided to leave Takata, but despite the black clouds hovering above the parts supplier, it seems that Key safety Systems (KSS) Inc has been selected as its sponsor. Takata denied this rumor, however.
Takata’s defective airbag inflators are found on more than 100 million cars globally, and include some 42 million vehicles in the United States alone. Moreover, the parts, which can explode with excessive force in the event of an impact, after prolonged exposure to heat and moisture, have been linked to at least 16 deaths worldwide, and more than 150 injuries.