Takata Decides to File for Bankruptcy Protection (News)
Tokyo, June 26 (Jiji Press)—Troubled airbag maker Takata Corp. decided on Monday to file with Tokyo District Court for bankruptcy protection under Japan's civil rehabilitation law, informed sources said.
Battered by a massive global recall, Takata's liabilities are seen finally exceeding ¥1 trillion, the largest amount for any failed manufacturer in Japan since the end of World War II.
The firm, whose airbags and seatbelts account for 20% of the global market, announced its intention to sell its assets to US-based supplier Key Safety Systems. CEO Takata Shigehisa, the third-generation head of the company, is also expected to step down.
Trouble for Takata started after defects in its airbags were linked to 11 deaths in the United States along with 5 in Malaysia, sparking a massive recall that is expected to extend to over 100 million units at a cost of more than ¥1 trillion.[Copyright The Jiji Press, Ltd.]