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Product recalls are costing companies and insurers billions, and the numbers are expected to increase.

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The $1 billion payment will include $25 million to the U.S. and $975 million in restitution that will be paid to carmakers and people who were injured. (Photo: iStock)

(Bloomberg) – Takata Corp. agreed to plead guilty and pay $1 billion to settle an investigation into its exploding air bags, which have been linked to at least 17 deaths worldwide, the U.S. Justice Department said.

The company will admit to wire fraud for misleading regulators, consumers and car manufacturers about the safety of its air bags, which would explode and spray drivers and passengers with shrapnel, according to court papers. Takata will be subject to an independent compliance monitor while on probation for three years.

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