Takata Airbag Manufacturer Declares chapter 11
Troubled Airbag Maker Takata Files for BankruptcyJune 26, 2017
Takata, the airbag manufacturer whose products have been implicated in a large number of injuries – and the resulting lawsuits – has declared Chapter 11 bankruptcy in Delaware. Its Japanese parent company has also filed for bankruptcy in Tokyo.
The company has reached a deal to sell most of its assets to auto parts supplier Key Safety Systems for $1.6 billion. KSS has indicated that it will keep on most Takata employees, and that it will not close of the company’s manufacturing plants in Japan.
Takata’s airbags, which have been installed in the vehicles of numerous major auto manufacturers, have been linked to at least 11 deaths, and have spurred the single largest recall in the history of the American auto industry. The airbags are alleged to explode due to misfires in their inflators.
In 2016, the National Highway Traffic Safety Administration (NHTSA) imposed on Takata the largest fine it had ever issued: $200 million. In that deal, Takata admitted to concealing from the agency its knowledge of the airbags’ fundamental – and potentially fatal – defect.
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