AUBURN HILLS, Mich. & TOKYO -

Takata Corp. and the U.S. Department of Justice have reached a settlement on the issues regarding Takata’s airbag inflator validation testing and reporting. Takata will shell out $1 billion in criminal penalties, according to DOJ, and three Takata executives have been charged with wire fraud and conspiracy. 

“Automotive suppliers who sell products that are supposed to protect consumers from injury or death must put safety ahead of profits,” U.S. Attorney Barbara McQuade of Eastern District of Michigan said in a news release. “If they choose instead to engage in fraud, we will hold accountable the individuals and business entities who are responsible.”

“For more than a decade, Takata repeatedly and systematically falsified critical test data related to the safety of its products, putting profits and production schedules ahead of safety,” said Fraud Section Chief Andrew Weissmann. “This announcement is the latest in the automotive industry enforcement actions the Fraud Section has taken to protect U.S. consumers against fraud.”

In a news release Friday, Takata said the settlement completely resolves the Justice Department’s investigation into Takata and its subsidiaries/affiliates.

Breaking down the aforementioned charges, Takata will plead guilty to one count of wire fraud for falsifying test data and reports distributed to automakers and will pay a $25 million criminal fine, the company said.

It will also create a $125 million restitution fund for people who have or will suffer personal injury from the Takata airbag inflator malfunction (whose claims have not already been resolved).

Takata is creating an $850 million restitution fund for automakers who received falsified testing data and reports or bought airbag inflators from Takata that contained phase-stabilized ammonium nitrate.

The company said it will boost its corporate compliance program and appoint an independent monitor.

That monitor will report to DOJ and check on Takata’s compliance with legal and ethical obligations.

“Reaching this agreement is a major step towards resolving the airbag inflator issue and a key milestone in the ongoing process to secure investment in Takata,” Shigehisa Takada, chairman and chief executive officer of Takata, said in a news release.

“Takata deeply regrets the circumstances that have led to this situation and remains fully committed to being part of the solution. We have taken aggressive actions to address past reporting lapses and will continue to work closely with regulators and our automotive customers to address the ongoing recalls and implement new technologies that advance vehicle safety, prevent injuries and save lives,” Takada said.