The Associated Press reported that airbag manufacturer Takata, Inc. will plead guilty to fraud before a federal court in Detroit. Takata is alleged to have knowingly supplied airbags to several automobile manufacturers when it knew that their inflators could explode and pose a risk of harm to passengers. Several deaths and hundreds of injuries were linked to Takata airbags. Takata, who agrees to a $1 billion dollar penalty as part of its guilty plea, will continue its ongoing recall efforts. The cover-up scandal, however, appears to embroil more than just Takata, Inc. The York Times also reports that on the same day of the Takata guilty plea a separate lawsuit has been filed by plaintiffs’ advocates in Florida alleging that major automakers Ford, Honda and Toyota elected to use defective Takata airbags despite knowledge of their dangers. The Takata matter is only the latest unfortunate example of the dangerous, and deadly, consequences that occur when corporations place profits over people.
Sources:
https://www.chicagotribune.com/business/ct-takata-air-bag-guilty-plea-20170227-story.html
https://www.nytimes.com/2017/02/27/business/takata-airbags-automakers-class-action.html?_r=0