Takata files for bankruptcy protection and agrees asset-sale
26/06/2017
Weaknesses in some of the air-bags Takata supplies to a wide range of automotive original equipment manufacturers (OEMs) have resulted in deaths and injuries and the recall of millions of vehicles. A criminal investigation in the US, focusing mainly on falsification of test data, has led to Takata facing a bill of $1 billion in fines and in compensation payments.
In parallel with the bankruptcy-protection announcement, Takata confirmed an agreement for the sale of all parts of its business unaffected by the criminal investigation to a Michigan-based, Chinese-owned automotive supplier, Key Safety Systems (KSS).
KSS said in a statement that, under this agreement, it will acquire all of Takata’s assets, “except for certain assets and operations that relate to Takata’s manufacturing and sale of phase-stabilised ammonium nitrate (PSAN) airbag inflators”. It will pay just under $1.6 billion.
It said Takata is likely to continue to run these “PSAN Assets” until the proceedings it faces are complete. At that point, according to KSS, what remains of Takata will “eventually be wound down”.
Share this story:
