Effects of Takata Bankruptcy to Extend Far and Wide<br />By JONATHAN SOBLEJUNE 26, 2017<br />TOKYO — Takata, the airbag manufacturer at the center of the world’s largest auto safety recall, filed for Chapter 11 bankruptcy in the United States on Sunday<br />and said it was selling its surviving operations to a rival supplier.<br />In its bankruptcy filing in the United States, Takata projected its liabilities at $10 billion to $50 billion,<br />vastly more than it will have to give even after the infusion of cash from Key Safety Systems.<br />Here is a summary of what Takata is doing, as well as how it will affect efforts to repair millions of vehicles<br />and compensate people hurt by exploding Takata-made airbags:<br />Basically, yes — Takata and its financial advisers have determined that it owes too much money to too many people to survive.<br />The huge range is because of major uncertainties: The recalls are only partially completed,<br />and no one yet knows how much they will ultimately cost or how much victims might be awarded in lawsuits.<br />Carmakers say they are committed to finishing the job, and Takata said on Monday<br />that it would continue to manufacture replacement airbag inflaters until the process is finished, something it expects will happen by 2020.<br />First, it will sell its assets (its factories, mainly) to a rival company, Key Safety Systems, which is based in Michigan.<br />Much of the work will now take place in courts in the United States and Japan.
