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Takata files for bankruptcy protection


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Why, why would anybody want to take on that liability...

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Bankruptcy court absolves the liability for the new owner. And since the Japanese government subsidizes their home companies, they should be on the hook for the recall expenditures as well.

 

Add On: Of course, KSS is a subsidiary of Chinese firm Ningbo Joyson Electronic Corp.

Edited by twintornados
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The concern is that even if all of Takata's assets were sold, there's not enough money to complete the recalls,

around 73% complete in Japan but less than 40% in North America and ROW.

 

If that's true then I think the responsibility for completing the recall will fall back on manufacturers.

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If that's true then I think the responsibility for completing the recall will fall back on manufacturers.

Which, in turn, means that a lot of it will fall on whichever company ends up with their business supplying airbags. Unless they go full liquidation, the company that ends up with that part of the business will have to finish out the recall; if they don't, what auto manufacturer is going to buy airbags (or anything else) from them in the future?

 

Bankruptcy law would protect them legally, but if I'm Ford and I'm looking at an airbag supplier who made a mess and left me holding the bag (so to speak...), they're going to have to make good, one way or another, before I'm going to buy from them again.

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Well the car was 11 years old and I'd expected to see something slightly misaligned...the main point was I was making it doesn't even look like they did anything..

If the fix for the Mustang is like the others I've seen, they go in up thru the glove box opening... no muss, no fuss.

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Which, in turn, means that a lot of it will fall on whichever company ends up with their business supplying airbags. Unless they go full liquidation, the company that ends up with that part of the business will have to finish out the recall; if they don't, what auto manufacturer is going to buy airbags (or anything else) from them in the future?

 

Bankruptcy law would protect them legally, but if I'm Ford and I'm looking at an airbag supplier who made a mess and left me holding the bag (so to speak...), they're going to have to make good, one way or another, before I'm going to buy from them again.

But here's the deal, Takata owes tens of Billions but most of that is to Auto companies

as part of in progress recalls, so Takata needs operating capital to continue with making

replacement airbags, if they cease trading then that just hurts auto companies more than now.

 

So the lesser of two evils may be for auto companies to keep Takata afloat and work through the recalls

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