Sci-tech

Airbag-maker Takata files for bankruptcy in Japan, US

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

Takata is expected to file for a U.S. Chapter 11-style bankruptcy protection procedure, along with a similar filing in the United States, sources have told Reuters.

The company's executives sought to reassure their customers, suppliers and shareholders in a news conference on Monday.

The faulty products can explode with too much force, shooting out fragments that could, and did, harm vehicle occupants.

A billboard advertisement of Takata Corp is pictured in Tokyo September 17, 2014. Besides the fatalities, they're also responsible for at least 180 injuries, and touched off the largest automotive recall in US history.

Global transport authorities have ordered about 100 million inflators to be recalled.

February, 2016 - Takata names an outside steering committee to develop a comprehensive restructuring plan while continues to supply recall inflators. The recalls, being handled by 19 affected carmakers, will continue. "Although we have acquired the right to be reimbursed for the costs of both past and future recalls from Takata and its affiliates, following Takata's filing, it is likely that we will not be able to exercise this right in most cases", Nissan said.

Takata's problem is the same that it has been ever since its air-bag inflators started malfunctioning in 2004: There's been no full accounting of the scope of its recall and potential class-action payouts.

They include billions being claimed by vehicle industry giants such as Honda, BMW, Toyota and others, which have borne the cost of recalls to date. Liabilities don't simply disappear: Indeed, recall obligations are treated as a claim of the US government, ranking ahead of other creditors in the queue for payouts.

November 2009: The National Highway Traffic Safety Administration opens an investigation into Honda's handling of the recalls but later determines that the automaker had acted responsibly.

More news: Spieth wins Travelers with 60-foot shot from bunker

The defect in the inflators stems from use of the explosive chemical ammonium nitrate to deploy air bags in a crash.

Takata has already agreed to pay a billion-dollar fine to settle with United States safety regulators over its airbags. Takata already has paid $125 million into a fund for victims.

Its shares were suspended Monday because they're going to be delisted, the Tokyo Stock Exchange said.

Takada said he intends to leave Takata's management once it is handed over to Key Safety Systems and things are running smoothly.

For Key Safety, Takata's other assets, such as its seatbelt business, are of importance as the company hopes to leverage Takata's assets.

This would open the door for a financial rescue from USA auto parts supplier Key Safety Systems, which Takata has tapped as its preferred financial sponsor.

News reports have said its liabilities would exceed one trillion yen ($9bn).

Key, a Chinese company with global operations, makes inflators, seat belts and crash sensors for the auto industry.

Takata has 12 overseas subsidiaries that have also filed for bankruptcy protection. Takata says the passenger side air bags contain an improper amount of generant, which produces the gas that makes them inflate. CEO Shigehisa Takada speaks during a press conference in Tokyo, Monday, June 26, 2017.



Like this

loading...
loading...

Latest


26 June 2017
Senate GOP health care bill vote: The whip count
Seventy-four percent of those polled, meanwhile, said they have a favorable opinion of Medicaid . "They've promised too much". MARTIN: So what does the Senate bill do? Considerably more generous than the house.

26 June 2017
UFC fighter sh*ts herself while getting choked out at Fight Night 112
Do work Lil' Bulldog! Justine Kish's third UFC bout will be one she'll be keen to forget about as quickly as possible. Kish opens up with a heavy pressure on Herrig, who decides to take this fight right to the ground with a takedown.

26 June 2017
Ken doll gets a major makeover for 2017
Mattel is trying to fight falling sales of its iconic doll line at a time when many kids would rather play with an iPad. The dolls cost $9.99 individually, $16.99 in a two pack, or $23.99 for a three pack.

26 June 2017
White House forgoes Iftar for first time in two decades
The statement further adds that: "Let us also pray for our beloved country Ghana; let us pray for peace, unity and prosperity". The festival marks the end of Ramadan during which believers abstain from eating and drinking during daylight hours.

26 June 2017
Metro Sallah Bomb: Multiple Explosions Rock University of Maiduguri
Isuku, who also confirmed that there were other suicide attacks on the town on the Sallah night, promised to give further details.

26 June 2017
Otto Warmbier's grim fate is routine in hellish North Korea
Simpson remains in the Pro Football Hall of Fame despite a murder accusation, and a conviction for armed robbery and kidnapping. Rodman, a ferocious rebounder and defensive player whose career was far more colorful off the court, was inducted in 2011.

26 June 2017
Liberum Capital Reaffirms "Buy" Rating for Workspace Group plc (WKP)
Ajo Lp has 0.01% invested in General Dynamics Corporation (NYSE:GD). (NYSE:VZ). 59,823 were accumulated by Sky Inv Ltd Liability. Bnp Paribas Invest Sa stated it has 0.01% of its portfolio in Anglo American plc (LON:AAL). (NYSE:VZ) for 173,297 shares.

26 June 2017
Horrific head-on Mississauga crash kills adult, two children
Winston Churchill Boulevard remained closed in all directions at the QEW overnight but all lanes have since reopened. Police are hopeful that other drivers in the area who witnessed the collision will contact police or CrimeStoppers.

26 June 2017
Trump suggests his tweet about tapes kept Comey honest
At the hearing, Comey told the committee "Lordy, I hope there are tapes", giving the President the go-ahead to release the tapes. His comments came after he finally admitted on Thursday that he does not have " tapes " of his conversations with Comey .

26 June 2017
Mistrial Declared In Bill Cosby Rape Case, Jury "Hopelessly Deadlocked"
The Associated Press does not typically identify people who say they are victims of sexual assault unless they grant permission. Andy Lassner, executive producer of The Ellen Show , wrote " I BELIEVE YOU" to the women accusing Cosby of sexual assault.