Air bag maker claims bankruptcy

Debra Rodriguez | 27 June, 2017, 08:45

Japan's crisis-hit vehicle parts maker Takata said Monday it has filed for bankruptcy protection and its chief executive would quit, after a deadly airbag defect triggered the auto industry's biggest ever safety recall.

The auto parts supplier is in the midst of a global recall of faulty air bag inflators that have affected 42 million vehicles across 19 automakers and are linked to at least 11 deaths in the United States alone.

TK Holdings, Takata's U.S. operations, filed for Chapter 11 bankruptcy in DE on Sunday with liabilities of US$10 to 50 billion, while the Japanese parent filed for protection with the Tokyo District Court early on Monday, Reuters reported on Monday.

Takata faces billions in lawsuits and recall-related costs to its clients, including Honda, BMW, Toyota Motor Corp (TM.N), which have been paying recall costs to date.

In one of Japan's biggest bankruptcies, Takata is facing tens of billions of dollars in costs and liabilities resulting from nearly a decade of recalls and lawsuits. It pleaded guilty to federal wiretapping charges in February and agreed to pay a $1 billion fine.

Key Safety, headquartered in Sterling Heights, Mich., said it would purchase almost most of Takata's global assets and operations in a deal worth almost $1.6 billion.

The Japanese auto parts maker has struggled to stay afloat amid lawsuits and recall costs over its deadly air bag inflators. At least 16 deaths and about 180 injuries worldwide have been linked to the defect. Its shares were suspended Monday because they're going to be delisted, the Tokyo Stock Exchange said.

The Takata bankruptcy will take some time to resolve.

The inflator recall, which is being done in phases to prioritize the riskiest vehicles, affects 46 million driver- and front passenger-side inflators in 29 million vehicles in the USA after a massive expansion a year ago.

Google to stop reading your Gmail to help sell adds
Google is stopping one of the most controversial advertising formats: ads inside Gmail that scan users' e-mail contents. Google had been scanning through what Gmail users were discussing and then showing ads connected to some of the topics.

But even if Takata will have to give up its brand, Miyao said that the worst-case scenario, where carmakers will have to halt production due to a disruption in the supply of air bags, will likely be avoided. But the safety devices relied on a faulty inflator that when activated can explode and send shrapnel into the vehicle. By many estimates, the crisis could cost Takata $10 billion before all is said and done. Notably, the sale will not include certain Takata operations surrounding ammonium nitrate airbag inflators that led to recalls around the globe.

Around 100 million airbags, including about 70 million in the United States, are subject to the massive recall.

As of May 26, only 38 percent of the air bag inflators under recall in the U.S. had been repaired, according to data on the U.S. Department of Transportation's National Highway Traffic Safety Administration website. Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp.is expected to seek bankruptcy.

Another $125 million will go to victims and Takata will pay a $25 million fine to the US government.

The company was filing for bankruptcy in order for a deal with Key Safety Systems Inc to go through.

Takada said he and top management would resign "when the timing of the restructuring is set".

"I've been told by others that I should leave [discussion of the scandal] to a committee of outside experts and that it would be inappropriate for me to comment or give my personal opinion", Takada said.

More than 100m cars with Takata airbags, including around 70m vehicles in the USA, have been recalled since concerns started being flagged back in 2007.

China releases Nobel laureate Liu Xiaobo with terminal cancer: lawyer

Colorado baker disputes anti-discrimination law

27 June 2017

Hassan Whiteside left off NBA All-Defensive team
The 35-year-old led the league in steal percentage (3.1), his second time to lead the league in the category (4.1 in 2014-15). He also became the first player in franchise history to register at least 150 steals and 100 blocked shots in a season.

25 June 2017

Take greater responsibility for your people, United Nations refugee chief to South Sudan
The UN refugee agency reported that "very high" volumes of conflict and persecution is forcing people to flee their homes. The UN agency said it found a record 65.6 million people were forcibly displaced at the end of 2016.

25 June 2017

Dozen frustrated Dems face steep challenge to unseat Pelosi
After Hillary Clinton's loss to Donald Trump last November, a significant crop of Democratic lawmakers attempted to vote her out. She dismissed the members who have said it is time for a change as "blatantly self-serving" and "having fun on TV".
Baby Doe's mother to be sentenced this week
Bond was also charged for helping dispose of Bella's body - and for taking government benefits for her daughter after her death. When the girl stopped screaming, Bond testified that she saw that the girl's head appeared to be swollen and her face was gray.

United States secure first win of America's Cup, trail NZ 4-1
It seemingly doesn't matter to Spithill that Oracle merely cut Team New Zealand's lead to 4-1 in the first-to-seven regatta. Races seven and eight are scheduled for Monday (NZT) where similar wind speeds of 8-10 knots are forecast.

Walker supports Johnson opposition to health care bill
In 2017, the average deductible for a silver plan is just under $3,600, according to Health Pocket, an insurance shopping site. His company was not one of the 10 that wrote to the Senate leaders, but he said Friday that he was also opposed to the bill.
27 June 2017

Brazil's crisis deepens as president Michel Temer accused of corruption
Brazilian President Michel Temer has been charged with accepting bribes by the country's chief prosecutor, a media report said. For Temer to go on trial, the lower house of Congress must first approve Janot's charge by a two-thirds majority.

Colorado baker disputes anti-discrimination law
The opinions expressed in this article are exclusively those of the author and are not necessarily those of World Religion News. Craig and Mullins were legally Wednesday in MA , because Colorado had not legalized same-sax marriage until 2014.

Cable vehicle crashes in tourist resort in Kashmir, killing 7
As per former Chief Minister of J&K, Omar Abdullah's tweet ( @abdullah_omar ) this is first-of-its-kind accident in the valley. He said the chief minister also directed a high level inquiry to find the causes or lapses, if any, that led to the accident.
Global shares fall on Fed rate hike, UK rate outlook
Not all observers agree though and plenty are sticking with the view that a further Fed rate hike is inevitable later this year. Some gains are expected on Wall Street later, with the futures for both the Dow and S&P 500 up 0.1 percent.

Not 'That Far Off' From Passing Health Overhaul
Sandoval said he would do "everything in my power" to make sure those people can maintain the quality of life they now have. Health and Human Services Secretary Tom Price defended the GOP health care plan Sunday from Republicans opposing the bill.

How to Watch the 2017 BET Awards
Past winners include Lionel Richie, Smokey Robinson, James Brown, Gladys Knight, Prince among others. As for the performances, Bruno Mars , DJ Khaled , Big Sean , A$AP Rocky, Lil Wayne , Mary J.

England hit by Lauren Winfield injury on eve of Women's World Cup Whoever lift the trophy at Lord's on July 23 will be undisputed winners with the luck of the draw playing no part. Australia and the West Indies will begin their campaigns against each other in Taunton tomorrow.

New study of Seattle's $15 minimum wage says it costs jobs In particular, they mischaracterize it as implying that papers tend to show minimum wage hikes do not affect employment. It's not just the scope of the losses, but the losses themselves which are remarkable for the public debate.

China releases Nobel laureate Liu Xiaobo with terminal cancer: lawyer In 1996, Liu was sentenced to three years of "reeducation-through-labor" as a result of further human rights activities. Liu, 61, is in the late stages of the disease, said Mo Shaoping, his lawyer, who has been in contact with Liu's family.

Plagued by airbag recall, Takata files for bankruptcy Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp.is expected to seek bankruptcy. With only 22 percent of the unsafe airbags repaired, it leaves roughly 54 million still on the road in the U.S.

Federer wins Halle Open tennis title Things can happen, things can change, if he has tough matches en route, he might feel it physically in the final. The Czech was playing her fifth match since the stabbing she suffered at her home in Prostejov six months ago.

US Congressman Scalise Showing Improvement After Being Shot — Lead Surgeon The timing - early in the morning - and the targets - seemingly Republican elected leaders - make this crime even more insidious. At a press conference, President Trump says that wounded Scalise's condition is more hard than people first realized.

Boeing wins Paris order title as Airbus's Leahy announces retirement For the first time, it lumped these models with large two-engined jets such as the Boeing 777 and the largest Airbus A350. Prior to the lease and the new orders placed to Boeing , Blue Air operated a fleet of 25 Boeing 737 aircraft.

Transformers tops U.S. box office but is biggest in China I did, however, find the amount of swearing in The Last Knight entirely unnecessary for something that should be a kids property. However, the fact that Michael Bay cares about the Transformers as much as Melania loves the Trumpster is infuriating.

UK: All building cladding samples tested failed fire safety The manufacturer of the insulation used to clad Grenfell Tower said they would stop using the product on high-rise buildings . Look, you've got to err on the side of caution. "In some cases it's possible to take mitigating action", she told Sky news.

White House paints Handel win as Trump triumph These Democrats might be on to something, especially in light of the way Pelosi figured into the Republican campaign in Georgia. Asked if Pelosi should remain the top House Democratic leader in the next Congress , her number two, Rep.

England vs South Africa, 3rd T20I But he also showed touch too in flipping leg-spinner Imran Tahir over short fine leg for a four that saw him to fifty. Morris was the most successful bowler with two wickets, while Phehlukwayo and Dane Paterson claimed one wicket each.

West Virginia Bracing For Remnants Of Cindy Flooding is already a problem in dozens of communities, and before it's over some areas could see a foot of water or more. On Friday , forecasters were trying to verify exactly how many tornadoes touched down in Alabama during Cindy's passage.

Escaped Georgia inmates captured in Tennessee after chase They are now being extradited back to Georgia to face Murder charges, as well as Federal charges for "Unlawful Flight". He also expressed gratitude to all of the law enforcement officers who provided support and assistance in the search.

Trump making case for apprenticeships to fill jobs gap Volkswagen has touted apprenticeship programs at its Chattanooga manufacturing plant as a way to bridge the US skilled labor gap. White House Chief of Staff Reince Priebus and Secretary of Education Betsy DeVos also participated in the roundtable.

27 towers fail fire safety checks in Britain, hundreds evacuated The government will work with local authorities to make sure any unsafe material is removed and residents are safe, she said . Specifics on where the buildings were located were not given, but officials said they were in 15 council areas.

Air bag maker claims bankruptcy

Recommended