Crushed by air bag recalls, Takata files for bankruptcy in US, Japan

Deadly faults in Takata's airbags triggered the auto industry's biggest ever safety recall

Deadly faults in Takata's airbags triggered the auto industry's biggest ever safety recall

The inflators prompted the automotive industry's largest ever safety recall and have been linked to at least 16 deaths worldwide. So far, about 100 million inflators have been slated for recall, a process which will take until about 2020 to complete.

In fact, the last batch of US repairs is not scheduled to begin until September 2020, according to the National Highway Traffic Safety Administration, which is overseeing the recall.

After kick-starting the world's largest automotive recall, Takata has resigned to fate and filed for bankruptcy protection. Michigan-based KSS is wholly owned by Shanghai-listed Ningbo Joyson Electronic.

That figure is not expected to increase because of Takata's bankruptcy, Kachi said. The new sponsor will not be liable for these inflators, which use ammonium nitrate, the volatile chemical compound at the root of the defective airbags.

Staff members lead a shareholder to the venue of the annual shareholders' meeting of Japan's crisis-hit auto parts maker Takata in Tokyo on June 27, 2017, a day after the company filed for bankruptcy protection.

In February, Takata Chief Financial Officer Yoichiro Nomura appeared in federal court in Detroit on behalf of the corporation to plead guilty to wire fraud and to express the company's "deep regret".

Key Safety Systems, a Chinese-owned supplier with US headquarters in Sterling Heights, Mich., said it had agreed to pay $1.6 billion to acquire Takata's key assets.

The scandal has hammered Takata's once-thriving brand and put it in a tight spot as it faces probes, lawsuits and massive liabilities, estimated to exceed one trillion yen.

KSS says that by purchasing almost all of Takata's business, it will create a leading global safety supplier.

Takata's lethally defective air bags proved to be the company's undoing Monday.

Among the biggest unsecured creditors of Takata's U.S. operation, according to a court filing, are virtually all of the major automakers, led by Honda, Toyota and Fiat Chrysler.

Only 38 percent of the 43 million airbag inflators under recall in the U.S. had been repaired as of May 26, according to data on the U.S. Department of Transportation's National Highway Traffic Safety Administration's website.

The controlling Takada family initially appeared to be holding out hope that it could find a white knight investor to save the company - perhaps by buying a minority stake - leaving Takata intact and out of bankruptcy. The company also settled a whopping $1 billion on their penalties in the United States; the charges were because of hidden unsafe defects on their airbag, the company pleaded guilty. And it has promised the U.S. government that it would pay $US125 million in compensation to victims. "We will continue fighting for our clients and prosecuting claims against Honda, Ford, Nissan, as well as Takata, to make sure all affected consumers receive the recourse they deserve".

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