Photo: Jaguar
Approximately 100 million vehicles, of which close to 70 million in the United States. That’s the extent of the airbag recall to rule them all, colloquially known as the Takata mess-up responsible for 11 deaths in the U.S. alone. Things started falling apart in 2013, but the Japanese company somehow kept it together. The end is on the horizon, though.
Citing unnamed sources, Nikkei Asian Review reports that Takata is “expected to file for bankruptcy protection, possibly within this month.” Since the cited story went online, just about everything went nuts with the Tokyo Stock Exchange. The condition, as expected, led to the suspension of Takata shares to protect the company.
Japanese media tried to reach to Takata for an answer, but the Roppongi-based corporation refuses to comment on this subject. A wise man once said that silence is an answer is an answer in its own right, if I may say so. But then again, it’s critical to highlight that there’s no telling if Takata is really planning to file for bankruptcy.
If the inevitable does happen, Takata will be remembered as the largest bankruptcy in Japan post-World War II history. Nikkei highlights that more than 1 trillion yen ($9.02 billion) of debt hangs around the neck of the airbag manufacturer like a millstone. Whatever happens next, it’s undoubtedly clear that Takata is in serious trouble.
After agreeing to pay $1 billion in penalties for its sins in the U.S., Takata announced that it had “established an external Steering Committee and commissioned it to develop a comprehensive restructuring.” Part of the plan might be parts manufacturer Key Safety Systems, which is expected to acquire Takata’s operations in the near future for an estimated 180 billion yen (approximately $1.62 billion).
The Michigan-based corporation, which is controlled by a Chinese supplier going by the name of Ningbo Joyson, refused to comment on the arrangement. For what it’s worth, it would be wiser for Takata to sell off its assets and call it a day. As far as airbag inflators are concerned, Takata has proven that it’s not cut for this line of business.
Japanese media tried to reach to Takata for an answer, but the Roppongi-based corporation refuses to comment on this subject. A wise man once said that silence is an answer is an answer in its own right, if I may say so. But then again, it’s critical to highlight that there’s no telling if Takata is really planning to file for bankruptcy.
If the inevitable does happen, Takata will be remembered as the largest bankruptcy in Japan post-World War II history. Nikkei highlights that more than 1 trillion yen ($9.02 billion) of debt hangs around the neck of the airbag manufacturer like a millstone. Whatever happens next, it’s undoubtedly clear that Takata is in serious trouble.
After agreeing to pay $1 billion in penalties for its sins in the U.S., Takata announced that it had “established an external Steering Committee and commissioned it to develop a comprehensive restructuring.” Part of the plan might be parts manufacturer Key Safety Systems, which is expected to acquire Takata’s operations in the near future for an estimated 180 billion yen (approximately $1.62 billion).
The Michigan-based corporation, which is controlled by a Chinese supplier going by the name of Ningbo Joyson, refused to comment on the arrangement. For what it’s worth, it would be wiser for Takata to sell off its assets and call it a day. As far as airbag inflators are concerned, Takata has proven that it’s not cut for this line of business.
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