TOKYO: Struggling auto parts maker Takata fell on Thursday as investors cashed in after its shares surged on news last week of an expected settlement over a US criminal probe into exploding airbags.
The Japanese auto parts supplier could reach a final agreement with the US Department of Justice before President-elect Donald Trump assumes office Jan. 20, two sources familiar with the matter told AFP last week, broadly confirming a report in the Wall Street Journal.
Takata shares opened higher, soaring 22.44 percent at one point to 1,233 yen — marking a more than 100 percent rise since Dec. 28 when they started climbing on hopes of a resolution.
But the early gains evaporated and the shares closed down 1.19 percent, or 12 yen, at 995 yen.
“It’s natural to see profit-taking as players can’t continue buying Takata shares only on speculation,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities Co.
“Takata shares are likely to remain volatile for now,” Horiuchi added.
US officials want Takata to recognize its wrongdoing and pay a financial penalty that could exceed $1 billion, one source said.
Prosecutors are hoping to have an agreement by January, as part of the outgoing Obama administration’s efforts to close the book on outstanding cases before Trump’s inauguration, the Wall Street Journal said.
Some 100 million Takata airbags have been recalled worldwide over a defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed.
The defect has been linked to 11 US fatalities and 15 worldwide. US regulators have said the problem is more dangerous in southern parts of the US with warmer and more humid climates.
Nearly every major carmaker has been forced to recall cars because of the defect, including General Motors, Honda, BMW and Tesla.
In November 2015, the US National Highway Traffic Safety Administration imposed a record $200 million civil fine against Takata for providing inadequate and inaccurate information to regulators about the defect.
The Japanese auto parts supplier could reach a final agreement with the US Department of Justice before President-elect Donald Trump assumes office Jan. 20, two sources familiar with the matter told AFP last week, broadly confirming a report in the Wall Street Journal.
Takata shares opened higher, soaring 22.44 percent at one point to 1,233 yen — marking a more than 100 percent rise since Dec. 28 when they started climbing on hopes of a resolution.
But the early gains evaporated and the shares closed down 1.19 percent, or 12 yen, at 995 yen.
“It’s natural to see profit-taking as players can’t continue buying Takata shares only on speculation,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities Co.
“Takata shares are likely to remain volatile for now,” Horiuchi added.
US officials want Takata to recognize its wrongdoing and pay a financial penalty that could exceed $1 billion, one source said.
Prosecutors are hoping to have an agreement by January, as part of the outgoing Obama administration’s efforts to close the book on outstanding cases before Trump’s inauguration, the Wall Street Journal said.
Some 100 million Takata airbags have been recalled worldwide over a defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed.
The defect has been linked to 11 US fatalities and 15 worldwide. US regulators have said the problem is more dangerous in southern parts of the US with warmer and more humid climates.
Nearly every major carmaker has been forced to recall cars because of the defect, including General Motors, Honda, BMW and Tesla.
In November 2015, the US National Highway Traffic Safety Administration imposed a record $200 million civil fine against Takata for providing inadequate and inaccurate information to regulators about the defect.
