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.

Читайте также: Uber's board votes unanimously to adopt all recommendations of Holder report

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.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2021 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Like this



26 Июня 2017
Is Deepika Padukone signing her second HOLLYWOOD film?
That's indeed good news for fans of Deepika not just in India but across the globe too. Here's looking forward to seeing Deepika kick some more butt in her next Holly outing.

26 Июня 2017
Senator Ron Johnson: 'We should not be voting on [AHCA] next week'
When Senate Republicans released their revision of the bill last week after writing it in secret, Obama thought the same thing. He told ABC's This Week that the Republicans have "at best, a 50-50 chance". "No way", Johnson said on NBC's Meet the Press .

26 Июня 2017
Nestle Targeted By Activist Third Point
Chocolate makers especially are grappling with weak US consumption as Americans increasingly turn their backs on sugar. So far, activist investors have predominantly targeted US companies, putting pressure on them to boost margins.

26 Июня 2017
Marines suffer severe burns in explosion on USA base
Problems continue to plague the F-35 program, which has become the most expensive defense project in USA history. Marine Corps said in a statement.

26 Июня 2017
Colombia: Boat carrying 150 tourists sinks in reservoir
The mayor of Medellin has said that firefighters and scuba divers from the city are now travelling to the Penol reservoir. Shortly after that, the boat began sinking. "The owners fixed it and it continued to operate", said Marylin Usme.

26 Июня 2017
Romania: president, political parties in talks over new PM
The Social Democrats withdrew support for Premier Sorin Grindeanu after just six months in office saying he'd underperformed. Despite losing popularity, the Social Democrats still have a loyal base in rural areas, and opposition parties are weak.

26 Июня 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 Июня 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 Июня 2017
Spieth wins Travelers with 60-foot shot from bunker
But, after Spieth had dropped a shot on the 14th and Berger made a birdie on the 15th, the pair were tied. He still had a birdie putt left for a chance to continue Sunday's Travelers Championship.

26 Июня 2017
Jaguar XE, XF and F-Pace gain 296bhp 2.0-litre petrol engine
The introduction of the powerful new engine is the latest in a series of enhancements to the XE, XF and F-PACE. In the Jaguar XF business saloon the new engine delivers 0-100km/h in 5.6 seconds (0-60mph in 5.5 seconds).