UPDATE | Takata agrees to plead guilty to concealing air bag defects, will pay $1B in fines, restitution

January 13, 2017 at 2:14p.m.

DETROIT (AP) — Takata has agreed to plead guilty to concealing air bag defects, will pay $1 billion in fines and restitution.

The U.S. Attorney's Office in Detroit announced the plea deal today.

Takata will pay a $25 million criminal fine, $125 million to individuals who were injured by the air bags and $850 million to automakers that purchased the inflators. The U.S. district court in Detroit has appointed Atty. Kenneth Feinberg to distribute restitution payments.

Payments to individuals must be made soon. Money due to automakers must be paid within five days of Takata's anticipated sale or merger. Takata is expected to be sold to another auto supplier or investor sometime this year.