The Strategist

Takata announces bankruptcy and transfer of US business

06/26/2017 - 14:38

Japanese company Takata - one of the world's largest manufacturers of airbags for cars - has announced bankruptcy and transfer of business to American company Key Safety Systems, according to a published press release.

Takata filed a bankruptcy petition with the Tokyo District Court for protection against creditors. The company’s debt exceeds $ 9 billion. The course of the bankruptcy case will include a reorganization, during which the Japanese company will be supported by Key Safety Systems.

In addition, TK Holdings, a contractor of Takata Corporation, also filed for bankruptcy.

Earlier it was reported that the reason for the decision to file the application for bankruptcy was the largest car recall in the history of the auto industry. According to Bloomberg, defected Takata airbags led to the death of at least 17 people, with more than 180 people injured. Earlier this year, the Japanese manufacturer pleaded guilty. As a result, Takata has replaced more than 100 million airbags.

Concern Honda Motor Co., a shareholder of Takata and the largest buyer of airbag manufacturer's products, in 2008 was the first to recall "problem" cars. The defective airbags were installed on the Accord and Civic models. Then dozens of other automakers followed Honda's example, including Volkswagen, Toyota Motor and General Motors.

In January, Takata agreed to pay $ 1 billion to US regulators, automakers and buyers of cars with defective airbags. The amount of the criminal penalty was $ 25 million. Compensation to the victims reached $ 125 million. In addition, before the beginning of 2018 Takata must pay $ 850 million to the world's automakers, which suffered losses due to mass car recalls.

The company Takata was founded in 1933 in Japan and subsequently became one of the largest manufacturers of security systems for cars. 


< >

Tuesday, June 25th 2024 - 11:34 Reuters learns of Shein's IPO filing in London