Takata shares rise on US airbag settlement reports
- Published
Around 100 million airbags made by Takata have been recalled globally
Shares of Japanese airbag manufacturer Takata have risen on reports it will settle a lawsuit with US regulators.
The firm is expected to pay up to $1bn (£822m) and plead guilty to criminal wrongdoing over faulty airbags, which have been linked to at least a dozen deaths and more than 100 injuries.
Most major carmakers have been affected by the fault, with around 100 million Takata airbags recalled globally.
Takata shares closed almost 17% higher in Tokyo.
Restructuring plan
Takata has acknowledged some of its airbag inflators exploded with too much force and sprayed metal shrapnel into the car.
Takata has not disclosed the total cost of the global recall, but there have been multiple reports it is working on a restructuring deal and potential bankruptcy protection.
The outgoing US administration is keen to clear several of its major investigations before President Barack Obama leaves office.
US authorities have announced several large settlements involving in recent days, including against Volkswagen and Fiat Chrysler.
- Published26 October 2016
