'Like bombs': Bankrupt Takata's air bags still out there

'Like bombs': Bankrupt Takata's air bags still out there

'Like bombs': Bankrupt Takata's air bags still out there

He also apologized for the company's demise due to the airbag inflator recall prior. The Japanese parts maker posted its third-straight annual loss even without including the full costs of repairing millions of air bags, which automakers are now paying for.

The company says it is facing between $10 billion and $50 billion in liabilities from nearly a decade of recalls and lawsuits linked to its defective air bag inflators, which could explode with too much force, sending metal shrapnel into vehicle compartments. The cost of the recalls continues to mount, and Takata said it could not yet estimate the scale of the liabilities it would ultimately face. It pleaded guilty to federal wiretapping charges in February and agreed to pay a $1 billion fine.

"We are following NHTSA's coordinated remedy to phase in vehicles by model, model years, and regions, over the next few years", a Ford spokesperson said. This points to around 40 million air bags as yet uncollected in the US and Japan combined.

The Takata bankruptcy will take some time to resolve.

The former world number two of gonglable cushions has signed an agreement to transfer its activities to Key Safety Systems (KSS), an American equipment manufacturer controlled by Chinese Ningbo Joyson Electronic, for the amount of 175 billion yen (2 billion Canadian dollars).

Nissan warned that it doesn't expect Takata to provide reimbursements, but the Japanese vehicle maker has already set aside reserves to pay for the recalls.

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In addition to its US-based subsidiary in the state of DE, which is under the protection of Chapter 11 on bankruptcy, its various units, particularly in China and Mexico, are concerned. Nissan is working with alternative suppliers to make new inflators for a prompt rollout in future vehicles. There is still a long way to go before repairs are finished.

At least $1 billion from the sale to Key is expected to be used to satisfy Takata's settlement of criminal charges in the US for concealing problems with the inflators.

But many civil complaints remain, particularly in the United States, the most affected country, and millions of vehicles have yet to be reported to the garage out of the 100 million globally recalled gonglable cushions.

TOKYO―Takata executives faced angry investors Tuesday after the company at the center of the world's biggest auto safety recall filed for bankruptcy and said it was being bought by a U.S. company. Apart from the penalty, Takata still has to handle the liabilities with regards to automakers involving recalls and other such settlements all involving the airbag recalls.

The filing all but destroys any value left in the shares of the Japanese airbag maker, which will be yanked from the Tokyo stock exchange next month.

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