AUBURN HILLS, Mich. & TOKYO--(BUSINESS WIRE)--Takata Corporation, a leading global supplier of automotive safety systems, today announced that its U.S. subsidiary TK Holdings, Inc. (TKH) has entered into a Consent Order Agreement with the National Highway Traffic Safety Administration (NHTSA). Through ongoing testing efforts, inflator replacement, continued cooperation with NHTSA and automakers, and further enhancing its already improved safety procedures, Takata is committed to being part of the solution.
As part of the Consent Order, TKH has agreed to pay a civil penalty of US$70 million (approximately ¥8.5 billion) in 6 installments by October 2020. TKH may become liable for additional civil penalties of up to US$130 million (approximately ¥15.6 billion) if it fails to meet certain obligations of the Consent Order.
Takata has also agreed to implement a series of actions, including the phasing out of the manufacture and sale of non-desiccated Phase Stabilized Ammonium Nitrate (PSAN) Takata inflators by the end of 2018. Also, it will not enter into any new contracts to provide PSAN inflators.
Shigehisa Takada, Chairman & CEO of Takata, said, “We deeply regret the circumstances that led to this Consent Order. 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.”
About Takata
Takata Corporation 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. Headquartered in Tokyo, Japan, it operates 58 facilities in 21 countries with more than 48, 775 global employees worldwide.