Japan’s Takata Corporation has reportedly copped a US$1 billion hit to its bottom line following the ongoing airbag saga.
The company’s airbag inflator units have been the source of millions of recalls worldwide, with around 17 deaths and many injuries linked to the faulty devices.
And like General Motors with its ‘switchgate’ saga, and Volkswagen with the ‘dieselgate’ emissions ‘defeat device’, the Takata (no ‘gate’ tag to date) issue looks set to lighten the company’s bank account as the US Department of Justice seeks to deter other companies from following similar leads.
Bloomberg reported in January that Takata and the Department were close to finalising an agreement that would see the former cough up US$1 billion in combined penalties for failing to act when it reportedly knew of dangers with its airbag inflators.
With the penalty now finalised, Takata announced that a predicted 20 billion Yen profit for the current financial year has now become a 64 billion Yen net loss (AU$737 million).
The result could be Takata’s worst in 11 years, and compares with a 13.1 billion Yen (AU$151 million) loss for the last financial year.
While Takata will likely be glad to put the financial penalties to bed, those said to have insider knowledge of the potential inflator unit dangers could still face criminal charges.
The company is currently seeking a new owner, but while the financial exposure from the US$1 billion fine (and many of the is now out in the open, potential civil lawsuits are still an unknown factor for would-be investors.
MORE: Honda Adds Another 25,000 To Takata Airbag Recall List In Australia
MORE News & Reviews: Takata | Fines | Airbags