Japanese auto parts maker Takata has pleaded guilty to fraud and will pay a $US1 billion ($AUD1.3 billion) penalty for installing defective airbags in millions of its cars.
Takata admitted hiding evidence its airbag inflators can explode with too much force, hurling shrapnel into drivers and passengers, according to reports by Yahoo.
The inflators are blamed for at least 16 deaths worldwide – 11 of them in the US – and more than 180 injuries.
The problem kicked off the biggest recall in US automotive history, involving 42 million vehicles and up to 69 million inflators.
The company’s chief financial officer, Yoichiro Nomura, entered the guilty plea on Takata’s behalf in federal court in Detroit on Monday. He also agreed Takata would be sold or merge with another company.
The penalties include $US850 million in restitution to car makers, $US125 million for victims and families and a $US25 million criminal fine.
Worldwide, the total number of inflators being recalled is more than 100 million.
For a list of all the car brands affected in Australia by the Takata airbag recall click here.
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