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Posts Tagged ‘Takata faulty airbags’

Key Safety Systems Agrees to $1.6B Purchase of Takata

Deal expected to be completed next year.

by on Nov.21, 2017

Key Safety Systems agreed to a $1.6 billion acquisition of Takata, except its airbag replacement business.

The final chapter for Takata is being written as Key Safety Systems will purchase most of the assets of the Japanese suppliers for $1.6 billion.

The Detroit-area supplier gets everything, including the company’s 45,000 employees, but not the operations producing replacement airbag kits for Takata’s faulty airbag recall. Takata will run that until the operations are complete.

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Most of the proceeds will go to pay the $1 billion penalty levied against Takata from a U.S. criminal fraud judgement.  (more…)

Takata Expected to File Bankruptcy in Japan

Action expected to come on Monday, according to reports.

by on Jun.23, 2017

The troubled supplier is close to filing bankruptcy, sources claim. The filing is expected to occur on Monday in Japan.

Long-troubled auto supplier Takata Corp. will file bankruptcy on Monday, as it seeks to reorganize billions of dollars in liabilities tied mostly to its defective airbag inflators.

The Japanese company, according to Reuters, will file for protection in Tokyo District Court under the Civil Rehabilitation Act, which is that country’s version of U.S. Chapter 11 bankruptcy. Reuters tied its report to sources, one of whom has direct knowledge of the matter and one who was briefed on the process.

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Takata will seek bridge loans from the banking unit of Sumitomo Mitsui Financial Group Inc., “which will provide tens of billions of yen (hundreds of millions of dollars) in bridge loans,” Reuters reported. (more…)

Takata Airbag Recall Effort Sputtering

Less than 35 percent of airbags replaced, politician says.

by on Jun.02, 2017

Sen. Bill Nelson (D-Florida) is prodding automakers to accelerate the pace of Takata airbag repairs.

Despite concerted efforts to double and production of replacements, less than 35% of vehicle owners with Takata’s potentially explosive airbag inflators have managed to completed the needed repairs on their vehicles.

Senator Bill Nelson of Florida said just 15.8 million inflators of 46.2 million recalled inflators were repaired through mid-May. Nelson said his figures came from a National Highway Traffic Safety Administration independent monitor.

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The recall began in 2015 after it was determined that the ignition materials may degrade over time and in certain instances explode, sending pieces of plastic and metal debris into the vehicle cabin. More than 15 deaths and 150 injuries worldwide have been tied to the inflators. (more…)

Toyota, Mazda, Subaru and BMW Settle Takata Suit for $553M

Four makers admit no wrongdoing in settlement.

by on May.18, 2017

Four automakers – Toyota, BMW, Mazda and Subaru – agreed to settle a class-action lawsuit for $553 million.

Toyota, Mazda, Subaru and BMW agreed to a $553 million settlement for a class-action lawsuit, accounting for 16 million vehicles equipped with faulty Takata airbag inflators, according to court documents.

Reuters reported that Toyota will pay $278.5 million as part of the settlement while BMW will pay $131 million, Mazda $76 million and Subaru $68 million. Nineteen automakers used the faulty inflators responsible for more than a dozen deaths and nearly 200 injuries worldwide.

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The inflators will explode under certain conditions, sending plastic and metal shrapnel into the cabin of the vehicle. Among those automakers in the class-action suit that haven’t reached a settlement: Honda, Ford and Nissan. (more…)

Takata Expected to Pay $1B as Part of Faulty Airbag Settlement

Ford recalls 816K vehicles just one day after Honda's action on 1.29 million.

by on Jan.12, 2017

The 2012 Ford Mustang is part of the latest recall of vehicles equipped with faulty Takata airbags.

Takata Corp. is going to pay $1 billion and plead guilty to fraud as part of a settlement with the U.S. Justice Department, according to reports.

The deal completes the government’s criminal investigation into the Japanese auto supplier’s faulty airbags, which under certain conditions will explode spraying shrapnel into the cabin of the vehicle.

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More than 15 people globally – 11 in the U.S. – have died as a result of the airbags and hundreds have been injured. It is the largest automotive recall in history. (more…)

Takata Selling Off Auto Shares to Pay for Possible Compensation

Supplier sells off most of stake in Honda; other makers next.

by on Jun.14, 2016

Takata is selling of its stock holdings in automakers to bolster its financial resources.

Takata Corp. is girding for the worst by selling its shares in various automakers to raise funds for the compensation claims it expects to face for its defective airbags that have caused the recall of more than 24 million vehicles worldwide.

The supplier is selling the stakes with the carmakers’ approval, said Akiko Watanabe, a spokeswoman for the supplier, declining to give more details to Bloomberg News.

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The airbags have been tied to 13 deaths, including 10 in the U.S. The units have faulty inflators that can deploy with too much force and the resulting explosion hurls plastic and metal pieces into the vehicle’s passenger cabin. (more…)

Toyota, FCA Recall About 2 Mil Vehicles for Faulty Airbags

Takata defect not the only problem.

by on May.24, 2016

The 2010 Lexus GX is part of the most recent airbag-related recall for Toyota.

Nearly 2 million more vehicles are being recalled by Toyota and Fiat Chrysler due to a series of airbag problems, the vast majority of them involving defective Takata airbag inflators.

Designed to enhance crash safety, airbags have become a major headache for automakers around the world due to design and manufacturing issues. The Takata problem alone has already become the largest recall in U.S. automotive history, impacting as many as 20 different automakers.

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The largest of the two new recalls involves 1.6 million Toyota vehicles equipped with Takata airbags. The service action affects both the driver and passenger front airbags on vehicles as much as a decade old and sold through the Toyota, Lexus and Scion brands. (more…)

Takata Declares Another 14 Million Airbags “Defective”

Acting “out of an abundance of caution.”

by on May.17, 2016

Takata expanded its recall of defective airbags by another 14 million vehicles.

What is already the largest safety recall in automotive history continues to get bigger, Takata announcing it will recall another 14 million airbags that could be prone to inflate improperly in a crash, a potentially life-threatening problem.

The move is actually the first in what will likely be a series of new recalls by the embattled Japanese supplier, Takata previously indicating it will ultimately add as many as 40 million inflators to the list. Prior to a May 4 agreement with the National Highway Traffic Safety Administration, 28.5 million airbag inflators had already been targeted.

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The precise number of vehicles that will be impacted by the new series of recalls has yet to be determined, as some models use several of the defective airbag systems. But earlier recalls had targeted about 24 million cars, trucks and crossovers sold in the U.S. (more…)

Takata May Recall Another 35 Million Airbags

Japanese supplier facing growing pressure to replace most or all of its airbag inflators.

by on May.04, 2016

A new report suggests that Takata may be forced to recall millions more airbags. The company's already recalled 24 million units.

The embattled Japanese supplier Takata may soon order the recall of tens of millions more vehicles due to potentially defective airbag inflators, according to a new report.

The move comes as pressure mounts on Takata to recall all of its airbag systems using ammonium nitrate inflators. A recent study warned that the explosive chemical may grow unstable over time, one of the apparent reasons why hundreds of Takata airbags have misfired, a problem now linked to at least 11 deaths.

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But whether such a move by Takata would satisfy the company’s critics is unclear. Some have called on the supplier to recall nearly 80 million airbag systems. Takata has already recalled more than 24 million cars, making it the largest safety-related recall in automotive history. (more…)

Airbag Recalls Could Cost Takata $24 Bil

Report sends Japanese supplier’s shares crashing.

by on Mar.31, 2016

A new report suggests that it could cost Takata as much as $24 billion to resolve its airbag recall.

With safety regulators considering whether to order the recall of all Takata airbags using ammonium nitrate, a new report suggests the Japanese supplier could be on the hook for as much as $24 billion in repair costs.

That astronomical bill has investors running for the exits and, some observers warn, could finally break Takata financially.

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More than 50 million Takata airbags have already been recalled, the majority of them in the United States, due to a defect that can cause them to explode with too much force when triggered by a crash. At least 10 deaths have so far been linked to the problem. But the number could grow to more than 287 million airbags, according to the Bloomberg news service. (more…)