The Department of Transportation announced Tuesday a fine of up to $200 million on Japanese air bag maker Takata for lapses in its recall of faulty air bag inflators.
The embattled company will pay $70 million in cash, and would face an additional penalty of up to $130 million if it violates terms of the deal with the DOT's National Highway Traffic Safety Administration. Under the agreement, an independent monitor will audit Takata for the next five years as the company phases out certain inflators, which the NHTSA said are linked to seven deaths and dozens of injuries.
If the NHTSA levies the full $200 million fine, it would be the largest civil penalty in the agency's history.
"This settlement is an important step forward for Takata that will enable us to focus on rebuilding the trust of automakers, regulators and the driving public," said Takata CEO Shigehisa Takada in a statement.