Takata Files For Bankruptcy - Closes Air Bag Division - And Prepares To Unload $10 BILLION In Debt

Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Japan and the U.S., succumbing to the weight of the world's biggest automotive recall. Takata said it would sell key assets to U.S. supplier Key Safety Systems.

Key Safety, based in based in Sterling Heights, Mich., said separately it would buy “substantially all” of Takata’s global assets and operations for $1.59 billion.

The sale will not include some operations related to Takata’s scandal-plagued business in ammonium nitrate airbag inflators subject to the global recall that torpedoed the company.

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TomM - 6/26/2017 10:36:42 AM

+3 Boost

We all knew this was coming - it should come as no surprise at all.
Now this leaves the car manufacturers holding the bag for the recall - which means several will take a big hit (FCA is one - Honda is another - and even Tesla installed these on Model S cars as well.)

MDarringer - 6/26/2017 7:44:20 PM

+1 Boost

Magic unicorns rejoice!