Airbag manufacturer Takata is expected to file for bankruptcy protection according to the Nikkei Asian Review. This follows the world’s largest automotive safety recall caused by the company’s defective inflators, which saw the Japanese manufacturer of automotive safety components plead guilty to criminal wrongdoing and agree to pay US$1 billion in settlement.
Now, Takata’s liabilities are seen to exceed 1 trillion yen (RM38.4 billion) following the global recall of defective airbag inflators, which as of October 2016 have been linked to 11 deaths in the United States alone, plus several cases in Malaysia.
For now, automakers have taken on the burden, as Takata says it cannot determine where the fault for the defect lies, and is unable to make “a reasonable estimate of the costs likely to be borne by the group.” Key Safety Systems, owned by Ningbo Joyson Electronic of China, will foot the bill for Takata’s recovery process.
A new company under Key Safety has been created to purchase Takata operations for 180 billion yen (RM6.9 billion), and will continue to supply airbags, seatbelts and other related products. The by-then-downsized Takata will remain responsible for recall-related liabilities, and its creditor banks will continue to give financial assistance to help with supplier payments and delivery of products to clients.
Takata’s founding family originally favoured an out-of-court settlement with creditors for its core Japanese unit, but the company would eventually face bankruptcy due to damages paid out to victims of the defective airbags, the report said. Its car manufacturer clients insisted on a court-mediated process to avoid the eventuality, and for a recovery to be more likely.
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Such unethical company shouldn’t existed in the first place! How many life and injury had been affected due to the greediness and stupid ego…
MY mgmt same same.
Only when they repoting to jepunis lords.
Takata going bankrupt still replacing the airbags around the world.
This is called corporate responsibility! Proton better learn from it.
not same. Here got tidur and minum teh also
Dont worry DOJ will save Malaysia. Already China save Proton and Malaysia. Now DOJ also tolong
DoJ saving MY from bright & prosperous future. Tenkiu DoJ.
Hail China!
Eh, i thought someone says jepunis lord no need plotek one? Quickly, must come plotek plotek.
If jepunis overlord even killing pun tidak apa. If p1 got recall even smalll basher bash gao gao
So pity for bashers. Why no bashing for this plotektion and tidak apa attitude? They might sleep, eat and drink tea during working hours until they create killing airbags
people still buys like nothing happens. how can the become bankrupt? please shift office to malaysia. all we care is good resale value. we keep this (deaths) case hush hush