Tokyo Stock Exchange

Takata files for bankruptcy following air bag recalls and lawsuits

Takata files for bankruptcy following air bag recalls and lawsuits

Shattered by recall costs and lawsuits, Japanese air bag maker Takata Corp. filed Monday for bankruptcy protection in Tokyo and the U.S., saying it was the only way it could keep on supplying replacements for faulty air bag inflators linked to the deaths of at least 16 people.

The company's bankruptcy filings cleared the way for a $1.6-billion takeover of most of Takata's assets by rival Key Safety Systems, which is based in Detroit but owned by a Chinese company.

Takata's inflators can explode with too much force when they fill up an air bag, spewing out shrapnel. Apart from the fatalities, they're responsible for at least 180 injuries worldwide.

So far 100 million...

EDITION: California | U.S. & World
59°