30 June, 2017
Meanwhile, Takata faces class action lawsuits from people claiming injuries as a result of exploding airbags, while it must also reach agreements with its automaker customers over how to divide up payment responsibilities for recall costs.
In September previous year, BMW recalled 110,000 cars in Japan, while Honda, Japan's second-biggest carmaker, recalled 668,000 vehicles for the same issue, bringing the tally of cars it has had to bring back to its dealership to 51 million. The company also could spend $550 million on another 4.3 million vehicles that may need repairs, but it was working with the National Highway Traffic Safety administration to prove those vehicles have air bags that work properly.
The sale of its business to Key Safety Systems won't save everything from the Takata bankruptcy.
Takata's CEO Shigehisa Takada through a prepared statement said the company believes that the actions taken in the US and Japan are the best means to address the current ongoing liabilities and costs of the issues arising from the airbag inflator in an organized way.
At least $1 billion from the sale to Key is expected to be used to satisfy Takata's settlement of criminal charges in the USA for concealing problems with the inflators.
The company has admitted that its employees knew about the potential problems with its air bag inflators as early as 2000.
Takata agreed in January to plead guilty in the USA to wire fraud for providing false data to safety regulators.
Lakhs stretch and twist on Yoga Day, PM extols yoga connect
The United Nations declared June 21 as the International Day of Yoga after Modi, a Yoga enthusiast lobbied for ancient Indian art. India's official broadcaster All India Radio said Yoga Day celebrations were taking place in 5,000 places across the country.
Lashkar attack on CRPF in Srinagar, trooper killed
The vehicular traffic on Srinagar-Jammu national highway from Pantha Chowk route was suspended after militant attack on Saturday. The injured were shifted to army's 92 Base Hospital in Badamibagh where the ASI succumbed to his injuries, an official said.
Amit Shah to meet 'opposing' ally Uddhav Thackeray
In a surprising move, the BJP on Monday proposed the name of Kovind as the NDA candidate for the upcoming Presidential election. While a host of BJP and Sena leaders were present at the Thackeray home, none of them were part of the meeting.
Takata will sell off key operations and concentrate on paying back creditors, management said Monday, with the company's long air bag debacle beginning a new act as it files for bankruptcy protection.
Takata has already agreed to pay a billion-dollar fine to settle with United States safety regulators over its airbags. The penalties include $850 million in restitution to automakers, $125 million for victims and families and a $25 million criminal fine.
CEO and president of KSS, Jason Luo said through a statement that Takata's underlying strength in its business did not diminish.
The problem, though, is that 100 million of the Takata inflators worldwide have been recalled, 69 million in the USA alone in the biggest automotive recall in American history.
"We're in a very hard situation, and we had to find ways to keep supplying our products", CEO Takada told the AP. Takata's assets bring with them a deep customer base.
Three of its executives were indicted in connection with the safety defects.
January 22, 2016: Federal auto safety regulators attribute a tenth death to a ruptured Takata air bag. Settlement agreements with Toyota, Subaru, BMW and Mazda have already won preliminary court approval.