Takata to expand in Hungary despite parent bankruptcy
- Author: Lawrence Cooper Jun 30, 2017,
Jun 30, 2017, 0:19
Takata, which is facing lawsuits and huge recall costs, has been accused of hiding the problem with its airbags for years.
100 million inflators have been recalled worldwide, including 69 million in the U.S. The recalls affect over 42 million vehicles.
In fact, the last batch of US repairs is not scheduled to begin until September 2020, according to the National Highway Traffic Safety Administration, which is overseeing the recall.
Even so, Key Safety, the world's fourth-largest air-bag maker bought by Ningbo Joyson past year, would gain greater access to Japanese automakers and the combined entity would pull closer in market share to leader Autoliv Inc.
As for the mark, it is likely to disappear once the case is settled, which could take time.
Late 1990s: Takata begins making air-bag inflators with ammonium nitrate propellant.
Takata's CEO Shigehisa Takada through a prepared statement said the company believes that the actions taken in the US and Japan are the best means to address the current ongoing liabilities and costs of the issues arising from the airbag inflator in an organized way.
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In the US, Takata agreed in January to plead guilty to wire fraud for falsifying testing data and reports provided to carmakers.
The problem, though, is that 100 million of the Takata inflators worldwide have been recalled, 69 million in the USA alone in the biggest automotive recall in American history.
Under the agreement with Key, remnants of Takata's operations will continue to make inflators to be used as replacement parts in the recalls, which are being handled by 19 affected automakers.
However, experts told the AP earlier this month that victims stand to receive $0.05 to $0.10 to dollar for what they could have received if Takata was a financially strong company. Takata has officially revealed that it will be sold to US-based Key Safety Systems, in a deal worth US$ 1.6 billion. Their replacements contain a drying agent to absorb excess moisture created by high temperatures, an idea Takata has come up with as a solution for the exploding airbags. It agrees to accept an independent compliance monitor and agrees to a recall of some 32 million inflators on vehicles for many automakers, including BMW, Fiat Chrysler, Daimler, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota.
Takata has already agreed to pay a billion-dollar fine to settle with USA safety regulators over its airbags.
The Japanese media had speculated that a "Rising Sun" alliance of Japanese carmakers - led by Honda, Takata's largest customer - might bail out Takata. Also, three former Takata execs have been indicted about the safety defects.
That worries Angela Dickie, 47, of Charleston, South Carolina, who owns a 2012 Volkswagen Passat with a Takata air bag.