Air bag maker Takata bankruptcy expected Monday in Japan, US

Air bag maker Takata bankruptcy expected Monday in Japan, US

Air bag maker Takata bankruptcy expected Monday in Japan, US

Key Safety Systems Inc., the US air bag maker owned by China's Ningbo Joyson Electronic Corp., has agreed to buy Takata's business for $1.6 billion, according to a statement posted on Takata's website.

As part of the bankruptcy protection plans, KSS would acquire all of Takata's assets barring certain assets and operations related to the airbag inflators involved in the global recall in the planned deal worth $1.59 billion.

The company announced the move Monday morning Tokyo time.

Key Safety Systems, a Chinese-owned supplier with USA headquarters in Sterling Heights, Mich., said it had agreed to pay $1.6 billion to acquire Takata's key assets.

Takata was done in by defective air bag inflators that can explode with too much force, spewing out shrapnel.

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The Tokyo-based firm is facing lawsuits and huge costs over the problems that are linked to at least 16 deaths and scores of injuries globally.

Yes. Automakers are ultimately responsible for the safety of their vehicles, and they have been funding the recalls.

Cars and trucks made by 19 companies are included in the recall.

Automakers will be able to recover some costs from Takata's remaining assets, but "experts say the companies still must fund a significant portion of the recalls themselves", reports the Associated Press. Takata already has paid $125 million into a fund for victims.

Takata's troubles stem from use of the explosive chemical ammonium nitrate in the inflators to deploy air bags in a crash.

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The recalls, expected to cover more than 100 million air bags, and accidents spurred the filing of multiple lawsuits against Takata and the vehicle companies using the air bags. At the end of April, only 22 percent of the 69 million recalled inflators in the USA had been replaced, leaving nearly 54 million on the roads, according to the National Highway Traffic Safety Administration website.

Dealers can legally sell used cars without notifying customers about open recalls. Claims are continuing against Honda, Ford, Nissan and Takata. Toyota, Subaru, Mazda and BMW will reimburse out-of-pocket expenses, provide loaners to some vehicle owners and set up an outreach program to increase participation in recalls, according to court papers filed May 18. Key is owned by Ningbo Joyson Electronic Corp. of China.

Auburn Hills-based TK Holdings will file Chapter 11 bankruptcy in Detroit and Takata will file bankruptcy in Japan, both on Monday.

Key, a Chinese company with global operations, makes inflators, seat belts and crash sensors for the motor industry.

No. If you're in a crash, it's far more likely that the air bag will protect you than hurt you.

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Takata has filed for bankruptcy and is selling most of its business to an American rival after failing to recover from one of the worst auto safety scandals ever. "We hope the day will come when the word "Takata" becomes synonymous with 'safety, '" the website says.

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