Japanese auto parts maker Takata Corp. pleaded guilty to fraud Monday and agreed to pay a $1 billion penalty for concealing a deadly defect in millions of its air bags.
Takata admitted hiding evidence that its air bag inflators can explode with too much force, hurling shrapnel into drivers and passengers.
The inflators are blamed for at least 16 deaths worldwide – 11 of them in the U.S. – and more than 180 injuries. The problem touched off the biggest recall in U.S. automotive history, involving 42 million vehicles and up to 69 million inflators.
The company’s chief finan cial officer, Yoichiro Nomura, entered the guilty plea on Takata’s behalf in federal court in Detroit.
Takata’s inflators use ammonium nitrate to create a small explosion that inflates air bags in a crash. But when exposed to prolonged high temperatures and humidity, the chemical can deteriorate and burn too fast.