Takata could be filing for bankruptcy next week while an US-based auto parts maker is showing interest in buying the assets under new company
Takata can be infamously credited with the largest ever recall in the automotive history and it has now been reported to be on course for bankruptcy. According to a report emerged on the Reuters, the Japanese automobile parts manufacturer could very well go for filing this next week.
It may not put an end to Takata altogether as Key Safety System, based on US, is showing interest in buying the assets of the Japanese brand. It could come as part of building a new company under restructuring in bankruptcy and the money involved is said to be a massive 180 billion yen ($1.6 billion).
Going by the Takata route, the US auto parts supplier is likely to continue providing seatbelts and airbags and other related automobile parts to the global auto brands under a newly established organisation. It will be effectively responsible for selling while the liabilities could be left behind in a separate entity.
The global news agency further reported that an agreement with Key will only be reached following Takata’s filing of bankruptcy. Amidst media reports that Takata could be preparing for bankruptcy, the Tokyo Stock Exchange has announced ceasing trades in shares of the Japanese brand.
However, no official statement regarding the matter has been released by Takata yet. Earlier in 2017, Takata agreed to pay one billion dollar settlement for the defectiveness in its products especially airbags. As compensation, Takata had been forced to pay $125 million to the affected owners as well as another $25 million in penalty. Moreover, it owns automakers $850 million which is due before early next year.
With 16 deaths and 180 injuries worldwide, Takata was taken to court for supplying 100 million faulty airbag inflators to carmakers as they were found to cause fatal injuries if exploded with too much force during crash and spread the harmful shrapnel.