The penalties include $850 million in restitution to automakers, $125 million for victims and families and a $25 million criminal fine.
Separately, three former executives are charged with falsifying test reports. They remain in Japan.
Takata’s inflators use ammonium nitrate to create a small explosion that inflates air bags in a crash. But when exposed to prolonged high temperatures and humidity, the chemical can deteriorate and burn too fast. That can blow apart a metal canister.
In the U.S., 19 automakers are recalling the inflators. Worldwide, the total number of inflators being recalled is over 100 million.
Plaintiffs in dozens of lawsuits against Takata and five automakers allege the car companies knew the products were dangerous yet continued to use them for years to save money.