Japanese Airbag Manufacturer Takata Files for Bankruptcy
Troubled Japanese car parts maker Takata has filed for bankruptcy protection in the United States and Japan. It faces lawsuits and tens of billions of dollars in costs over an airbag defect linked to at least 17 deaths globally.
“At a board meeting on June 26, our company decided to begin procedures in filing for bankruptcy protection,” Takata said in a statement after filing for Chapter 11 bankruptcy protection in the US, with similar action taken in Japan.
Takata’s 12 overseas subsidiaries have also filed for bankruptcy protection.
American car parts maker Key Safety Systems (KSS) will take over Takata which will sell its assets and businesses to KSS for an estimated $1.6 billion.
"Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach, and exceptional steering wheels, seatbelts, and other safety products have not diminished,"said KSS chief executive Jason Luo.
He added, “we look forward to finalizing definitive agreements with Takata in the coming weeks, completing the transaction and serving both our new and long-standing customers while investing in the next phase of growth for the new KSS.”