Takata will pay $1B for lying about defective products

By Madhu Majumdar / Jan 14, 2017 01:27 PM EST
(Photo : Getty Images/ Bloomberg) Takata, who has been found guilty of false quality claims and feature display of their products. Takata has received a penalty charge and will be paying 1 Billion in total towards the frauds they committed and the claims made by the injured.

Automobile vehicles have been designed in such a way that they save the time and energy of the users while traveling long distances. They also ensure that they are designed in the best way to prevent any kind of injury, by being equipped with certain safety measures. This however does not always help. The recent news surfaced on the internet about one such automobile company, Takata, who has been found guilty of false quality claims and feature display of their products. Takata has received a penalty charge and will be paying 1 Billion in total towards the frauds they committed and the claims made by the injured.

According to detailed information from FoxNews, the air bags supplied by the company had a 1005 risk of not living up to the specifications mentioned when the items were sold to the customers. The airbags had a massive defect of bursting with too much force which could kill the driver instead of protecting him or her. Statistics state that these airbags supplied by the company have resulted in 16 deaths worldwide out of which 11 deaths have occurred in the United State due to the defect. The defect has also resulted in more than 180 people being injured.

A statement by soccer-mom, McQuade, states that Takata wanted to make large amount of profit from its products and hence they risked this to happen which is disreputable. This statement is true because people who drive minivans may get involved in small accidents while traveling with children but the airbags must protect the drivers and not kill them instead.

ABCNews further explains that the company will have to pay $25 million as criminal fine for these defects, $125 million (in total) to individuals injured by the air bags and also another $850 million to the automakers who purchased these defective inflators. The company is definitely responsible for large amount of harm caused to the people because it stood as the second largest supplier of airbags in 2015 which accounts for 20 per cent of the total amount of airbags sold worldwide.

Attorney Kenneth Feinberg will be appointed in order to distribute restitution payments.The Executive Vice President of the inflator global operations, Tanaka, along with Nakajima, Director of engineering, and Chikaraishi, Chief of Japan-Asia inflator operations will be extradited to the U.S. for trial.