By on January 19, 2017

Takata-jpg

The remaining bidders for the ailing Takata Corporation are insisting on a court-mediated turnaround for the airbag supplier’s operations. Takata is in the midst of selecting a financial backer after incurring billions of dollars in costs to replace tens of millions of defective airbag inflators linked to a minimum of sixteen deaths.

However, Takata has stated it would much prefer an out-of-court process for its operations to ensure the uninterrupted supply of replacement inflators. Keeping the turnaround private also would also be a way for the founding Takata family to avoid the complete obliteration of the company’s share values.

Asia’s Nikkei reports that Swedish air bag maker Autoliv Inc and U.S. parts supplier Key Safety Systems (KSS) will reveal their proposals for a court-led restructuring program of the Japanese company sometime this week. As potential bidders for Takata, both parties prefer a court-assisted turnaround of its business, which would offer legal cover and greatly limit exposure to the company’s existing liabilities. The company’s recall expenditures alone could be as high as $10 billion.

While its financial future looks bleak, Takata has struggled to manufacture the millions of replacement inflator parts required for the record-setting recall. As a result, it has reached out to its competitors, including Daicel, Autoliv, and ZF TRW to support its production efforts.

Automakers affected by the recalls, including Honda, Toyota, and Ford, have been paying to recall the inflators themselves due to the massive number of faulty units. Many have stated that the compensation included in Takata’s U.S. settlement would do very little to cover those costs.

[Image: Takata]

Get the latest TTAC e-Newsletter!

Recommended

No Comments on “Shocker: Takata Bidders Want Court Involved in Company’s Turnaround...”

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Superdessucke: I know the vehicle media is trying to make us think this is the best balanced and driving car since...
  • forward_look: Dumb question: whaddaya call those ugly left-and-right grille things? What are they supposed to be? Fog...
  • dwford: This actually looks like it’s worth the $30k loaded, unlike it’s competitors.
  • ThomasSchiffer: @ToddF1, The Autobahn in general has this mythical reputation of a highway with no speed limits on...
  • forward_look: I wonder how Mazdas stand up to a continuous salt bath from November til April. In upstate NY, car life...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States