Japanese airbag part manufacturer prepares for possible bankruptcy
Tokyo - Beleaguered Japanese car-parts supplier Takata is preparing for a possible bankruptcy filing for its US subsidiary amid mounting costs stemming from its faulty airbag inflators, the Nikkei business daily reported Friday.
The move could help Takata find a sponsor to ensure its parts-supplying operations continue as it seeks an out-of-court reorganization, Nikkei said.
The Tokyo-based company already faces recall costs exceeding 1 trillion yen (US$9.7 billion), with 69 million airbags on recall in the US alone and its US unit, TK Holdings, expected to shoulder even more recall expenses, the paper said.
Honda Motors, Takata's biggest customer, plus Toyota Motors and other customers are believed to be in favour of a bankruptcy filing, the report said.
Takata's defective airbag inflators have forced carmakers to recall tens of millions of vehicles worldwide.
Its faulty airbags can potentially rupture explosively when deployed in a collision, spraying metal fragments at drivers as well as passengers.
At least 15 deaths and more than 150 injuries have been linked to the defect worldwide, Takata said in June.
