TOKYO: Shares in struggling auto parts maker Takata surged Friday following a report the company and US authorities could announce a settlement later in the day over deadly exploding airbags.
The final agreement with the Japanese airbag maker may include criminal charges and a fine of up to $1 billion, Bloomberg News reported, citing people familiar with the matter.
Takata shares closed up 16.46 percent, or 150 yen, at 1,061 yen after having reached their maximum daily increase early in the session.
The performance took gains since late last month to about 75 percent as investors bet on the two sides striking a deal.
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 problem has been linked to more than a dozen deaths worldwide and scores of injuries. US regulators have said the defect is more dangerous in southern parts of the United States with warmer and more humid climates.
Nearly every major carmaker has been forced to recall cars because of the fault, including General Motors, Honda, BMW and Tesla.
In November 2015, the US National Highway Traffic Safety Administration imposed a record $200 million civil fine on Takata for providing inadequate and inaccurate information to regulators about the defect.
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