Air bag recalls, lawsuits lead Takata to file for bankruptcy

Air bag recalls, lawsuits lead Takata to file for bankruptcy

Air bag recalls, lawsuits lead Takata to file for bankruptcy

Takata Americas, its USA arm, filed for Chapter 11 bankruptcy in DE on Sunday with liabilities of US$10 billion to US$50 billion, while the Japanese parent and subsidiaries filed for protection with the Tokyo District Court early on Monday.

Japan's crisis-hit vehicle parts maker Takata filed for bankruptcy protection Monday and said its chief executive would quit after a deadly airbag crisis that triggered the auto industry's biggest ever safety recall.

Takezo Takada starts Takata Co, maker of lifelines for parachutes. CEO Shigehisa Takada, second left, bows after a press conference in Tokyo, Monday, June 26, 2017.

Takata's air bag inflators are blamed for rupturing and spewing unsafe debris into a vehicle's cabin, as NPR's Sonari Glinton reported.

Key Safety, a diversified manufacturer of vehicle safety systems, will purchase struggling Japanese airbag-maker Takata the weight of history's largest auto safety recall has finally claimed the airbag-maker. The Tokyo-based auto parts giant is facing lawsuits and huge costs over an airbag defect linked to at least 16 deaths globally. The substance can quickly inflate the bag after a crash, but it's highly combustible. The company acknowledged that it manipulated testing data that it provided to automakers, convincing them to buy Takata's airbags over those made by other manufacturers.

The bankruptcy filing will likely leave most of the financial burden on them without getting much paid back by Takata. Caudill said that would be a waste of time, given Takata was extensively shopped prior to the bankruptcy and that only one bidder had clear support from automakers.

Parts are not yet available for some models, and other models haven't been recalled yet. The VIN check page will be updated as automakers announce more recalls. Takata blames improper welding. Takata blames the handling of air bag propellant chemicals.

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Takata's operations include production of seat belts, air bags and children's vehicle seats, and has had a global market share of 20% in the air-bag market. Parham bleeds to death after shrapnel from the air bag slices open her carotid artery. The company said it plans to set aside sufficient money to cover those claims, which will be based on an expert's estimate.

2014: Lawmakers push for a nationwide recall of Takata air bags during congressional hearings.

The recalls - expected to cover more than 100 million airbags - and accidents spurred the filing of multiple lawsuits against Takata and the auto companies using the airbags. At the end of April, only 22 percent of the 69 million recalled inflators in the US had been replaced, leaving nearly 54 million on the roads, according to the National Highway Traffic Safety Administration website. Malfunction of Takata's airbag inflators led to at least 16 deaths and a $1 billion fine in the U.S.

Takata pleaded guilty and must pay United States dollars 1 billion in fines and compensation to both victims and carmakers, a burden which means the company is forced to sell.

TK Holdings, a US-based subsidiary of the company, has also filed for bankruptcy in the United States, and says that it will receive financial backing for its restructuring by US-based Key Safety Systems, according to Takata. If you would like to discuss another topic, look for a relevant article. That includes 69 million in the USA, affecting 42 million vehicles.

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