Jump to content
  • William Maley
    William Maley

    By William Maley •

    Takata Files For Bankruptcy, Sells Off Assets To Another Supplier

    Followers 0

      We knew this was going to happen

    Airbag manufacturer Takata is at the center of one the largest automotive recalls which affect an estimated 100 million vehicles from two dozen automakers around the world. The airbags in question have inflators that can rupture and send shrapnel flying in the event of a crash. They have been linked to at least 16 deaths and 180 injuries. Now, the next chapter begins as Takata filed for bankruptcy.

    Yesterday, TK Holdings (Takata's U.S. operations) filed for Chapter 11 bankruptcy in Delaware on Sunday with liabilities totaling between $10 billion to $50 billion. The company would file for bankruptcy in Japan today.

    Takata also announced that it would be selling its key assets to Key Safety Systems, a Michigan-based supplier owned by China's Ningbo Joyson Electronic Corp. The purchase will cost Key $1.6 billion.

    At a press conference today in Tokyo, CEO Shigehisa Takada said the company had no choice to sell their assets due to liabilities increasing and finances collapsing.

    "We spent much time on negotiations, it was extremely difficult to reach an agreement with more than 10 carmakers worldwide and a sponsor candidate company," said Takada.

    "If things are left as is, we are aware of risks that we may not able to raise fund and to continue stable supply of products. In light of the management environment we face, the state of negotiations with the sponsor candidate and carmakers, and the external expert committee's opinion, we have decided today to file for bankruptcy protection."

    Takata attorney Nobuaki Kobayashi said the total amount of liabilities was still unknown and the company is in talks with automakers to figure out the worldwide cost. According to Automotive News, analysts put potential liabilities as high as $10 billion for ongoing recalls, penalties and settlements. A report from Tokyo Shoko Research Ltd., puts Takata total liabilities at 1.7 trillion yen (about $15 billion).

    Back in February, Takata pleaded guilty to wire fraud charges in the U.S. for withholding key information about the defects and manipulating test data. 

    Source: Automotive News (Subscription Required), Reuters

    Followers 0
    Go to articles

    User Feedback

    Recommended Comments

    daves87rs
    2 hours ago, A Horse With No Name said:

    China will own everything, one reason Ford is beneath my lowest level of concieveable contempt right now for outsourcing the Focus to China.

    This will not end well for a number of reasons.

    I was mad, but also realized how bad the small car market is going to take in the next year or so. GM is going to wish they could build the Cruze in mexico! I was hateful at first too-but the auto market is about to take a sharp hit soon. They will have to save money any way they can.

    As much as I hate the idea of chinese focuses, it is a way to save....

     

    And as far as the above company-just goes to sound many, many OEM parts will be made in China soon....

    Link to comment
    Share on other sites
    oldshurst442
    5 hours ago, William Maley said:

    Takata attorney Nobuaki Kobayashi

    And with this bankruptcy my guess is you will never hear this mess again...

    What a second....Ive heard this before...

    Oh yeah!

     

    Edited by oldshurst442
    Link to comment
    Share on other sites
    Robert Hall

    Not sure if you can undo the trade imbalance and globalization...companies are too entrenched...most all consumer electronics are assembled in China or elsewhere in Asia, some using chips manufactured in the US.  Parts are sourced from all over.   I do wonder if we have gone so far as a country in outsourcing various parts of the supply chain that we can't go back to building a lot of things here, at least not easily..

    Link to comment
    Share on other sites
    A Horse With No Name
    37 minutes ago, riviera74 said:

    So how do we solve that issue without starting a nasty and counterproductive trade war?

    That is the sixty four million dollar question. 

    32 minutes ago, Cubical-aka-Moltar said:

    Not sure if you can undo the trade imbalance and globalization...companies are too entrenched...most all consumer electronics are assembled in China or elsewhere in Asia, some using chips manufactured in the US.  Parts are sourced from all over.   I do wonder if we have gone so far as a country in outsourcing various parts of the supply chain that we can't go back to building a lot of things here, at least not easily..

    I think more things need to be made here but I am more concerned about Chinese human rights violations than about trade. Maybe we could get some sort of enforceable human rights agreements to go with the trade agreements our leaders seem so eager to sign.

    Link to comment
    Share on other sites
    Robert Hall
    14 minutes ago, A Horse With No Name said:

    That is the sixty four million dollar question. 

    I think more things need to be made here but I am more concerned about Chinese human rights violations than about trade. Maybe we could get some sort of enforceable human rights agreements to go with the trade agreements our leaders seem so eager to sign.

    Unfortunately, human rights are at the bottom of the priority list for global corporations, the current administration and Congress... (my cynical opinion...some say I'm a pessimist, I prefer 'realist').

    Edited by Cubical-aka-Moltar
    • Like 1
    Link to comment
    Share on other sites
    A Horse With No Name
    Just now, Cubical-aka-Moltar said:

    Unfortunately, human rights are at the bottom of the priority list for global corporations, the current administration and Congress...

    Which leads me into an ugly double bind....I feel better about buying Chinese than buying American made products given what you just wrote.

    My Dryer broke and parts to fix it are more than it is worth...thinking of buying Samsung or something for that very reason.

    Link to comment
    Share on other sites
    David
    16 hours ago, A Horse With No Name said:

    Which leads me into an ugly double bind....I feel better about buying Chinese than buying American made products given what you just wrote.

    My Dryer broke and parts to fix it are more than it is worth...thinking of buying Samsung or something for that very reason.

    Hold off on buying Samsung appliances. My sister and Brother in law have their own appliance repair business and Samsung appliances are notorious for breaking down and not being able to get repair parts.

    They say the most reliable long life for Washer / Dryer or dishwasher but also other appliances would be Bosche. If you want more than a 1yr warranty 90 days labor which is what comes pretty much on all appliances, then look at Speed Queen. 3yr parts n labor warranty. Commercial grade built for residential and they just work.

    Good Luck,

    • Thanks 1
    Link to comment
    Share on other sites
    David
    1 hour ago, A Horse With No Name said:

    Thanks for your advice...have not had the best of luck with Bosch dishwashers...speed queen it might be...!

    Sorry to hear about the Bosch as both my sisters, my parents and me have them and have had no problem with them. What is the current problem and I can talk to my brother in law and see what he says?

    Link to comment
    Share on other sites
    A Horse With No Name
    20 minutes ago, dfelt said:

    Sorry to hear about the Bosch as both my sisters, my parents and me have them and have had no problem with them. What is the current problem and I can talk to my brother in law and see what he says?

    Control board is out of my dishwasher and it is an older dish washer. I think the GE dishwasher that matches our fridge and stove is American made....only issue with the Bosch is that it will not latch and is stuck in regular wash cycle.  using woodworking clamps to keep it shut is a red-green-ish hill billy hack but it cleans dishes flawlessly...

    Checking into Speed Queen...as mad as i get politically at both parties...and at the country...I will buy American when they build an excellent product. I love Sierra Nevada Beer and several other American manufacturers.

    Speed queen...asked around a bit...checked a few things out...they seem like well made appliances. Will have to seriously consider them, as everything else on the market seems like expensive junk.

    Thanks for your help!

    Edited by A Horse With No Name
    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

    ×



  • Similar Content

    • William Maley
      Industry News: New Audit Rakes NHTSA Over the Coals On Takata Recall
      By William Maley
      A new audit released by the U.S. Transportation Department’s Office of Inspector General rips the National Highway Traffic Safety Administration (NHTSA) over its handling of the Takata airbag recall.
      In the report, the Inspector General says NHTSA's recall monitoring process "does not ensure that remedies are reported completely and in a timely manner," nor does it "verify recall completion rates, although it has the authority to do so." Other issues the audit found included the long time it took the agency to determine the scope of the Takata recall and missing documents due to limited monitoring and inadequate procedures.
      "In June 2014, RMD [NHTSA's Recall Management Division] received a recall notification for Takata airbag inflators in over 140,000 vehicles. The notification stated that the manufacturer planned to tell owners to take their vehicles to dealerships for repairs in February 2015. However, as of February 2018, RMD had not received the manufacturer's remedy documents, and [the Office of Defects Investigation's] recall recordkeeping system does not indicate that RMD staff requested those documents," the report said.
      The Inspector General makes six recommendations including better training for staff, creating a system to handle missing documents and communications, and documenting various lessons from the Takata recall.
      NHTSA in a letter said it "did not endorse all of the report’s findings," but did agree to some of the recommendations.
      The agency has come under fire for a number of years due to its poor handling of various auto safety issues, including Toyota's unattended acceleration crisis and GM's ignition switch mess. This latest audit is fourth since 2011 by the inspector general. The last audit done in 2015 said NTHSA failed to investigate safety issues carefully, hold automakers accountable, and adequately train their staff which resulted in “significant safety concerns being overlooked.”
      Source: Reuters

      View full article
    • William Maley
      New Audit Rakes NHTSA Over the Coals On Takata Recall
      By William Maley
      A new audit released by the U.S. Transportation Department’s Office of Inspector General rips the National Highway Traffic Safety Administration (NHTSA) over its handling of the Takata airbag recall.
      In the report, the Inspector General says NHTSA's recall monitoring process "does not ensure that remedies are reported completely and in a timely manner," nor does it "verify recall completion rates, although it has the authority to do so." Other issues the audit found included the long time it took the agency to determine the scope of the Takata recall and missing documents due to limited monitoring and inadequate procedures.
      "In June 2014, RMD [NHTSA's Recall Management Division] received a recall notification for Takata airbag inflators in over 140,000 vehicles. The notification stated that the manufacturer planned to tell owners to take their vehicles to dealerships for repairs in February 2015. However, as of February 2018, RMD had not received the manufacturer's remedy documents, and [the Office of Defects Investigation's] recall recordkeeping system does not indicate that RMD staff requested those documents," the report said.
      The Inspector General makes six recommendations including better training for staff, creating a system to handle missing documents and communications, and documenting various lessons from the Takata recall.
      NHTSA in a letter said it "did not endorse all of the report’s findings," but did agree to some of the recommendations.
      The agency has come under fire for a number of years due to its poor handling of various auto safety issues, including Toyota's unattended acceleration crisis and GM's ignition switch mess. This latest audit is fourth since 2011 by the inspector general. The last audit done in 2015 said NTHSA failed to investigate safety issues carefully, hold automakers accountable, and adequately train their staff which resulted in “significant safety concerns being overlooked.”
      Source: Reuters
    • William Maley
      GM News: GM Korea Takes Bankruptcy Off the Table After Last-Minute Wage Agreement
      By William Maley
      It has been a tense couple of months at GM Korea. Back in February, the company announced a restructuring plan for the division which included the closure of the Gunsan plant (one of the four plants operating in South Korea), and voluntary redundancies for 2,600 workers to stem the hemorrhaging of cash. Recently, GM has been pushing its workers’ union for concessions that would total $80 million. This is part of an effort to get a $500 million injection from the South Korean government to pay suppliers and workers. The workers union weren't buying, threatening to strike and trashing company executive offices earlier this month. Then GM threw down the gauntlet, either agree to the concessions by April 20th or we begin bankruptcy proceedings.
      “Without concessions from the labor union and clear resolution from stakeholders, the company has no choice but to go ahead with rehabilitation proceedings,” said GM Korea executive Kaher Kazem in an email to employees.
      Unfortunately, the date passed with no agreement and it seemed bankruptcy was on the horizon. But both GM and union rep would continue to talk over the weekend to see if a deal could be reached. At the 11th hour, an agreement was reached.
      “Through the latest agreement, GM Korea will be a competitive manufacturing company,” said Kazem in a statement today.
      According to Reuters who got to see the deal, the union agreed to freeze base wages, skip bonuses for this year, and cut back on benefits.
      “The labor union made huge concessions to save the company,” said Hong Young-pyo, a lawmaker of the ruling Democratic Party who worked on the mediation between the two groups.
      A union spokesman declined to comment when contacted by Reuters, only saying that workers will vote on the agreement later this week.
      The deal now allows the Korean government to fund Korea Development Bank (KDB) - the second largest shareholder in GM Korea - to provide support. It also allows GM to allocate two new models for the region. But some analysts are still uncertain as to the future of GM Korea. Labor costs, poor sales, and expensive export costs have some wondering if GM is in it for the long run or are planning an exit strategy.
      “GM has extended the lifeline of GM Korea, but not sure how long it will last,” said Lee Hang-koo, a senior research fellow at Korea Institute for Industrial Economics & Trade.
      Source: Reuters

      View full article
    • William Maley
      Industry News: Runorpile: Takata In the Process of Working on A Settlement With Justice Department
      By William Maley
      The Takata Airbag recall now stands as the largest vehicle recall ever due to how many vehicles around the world use them. In the U.S. alone, 19 auto manufacturers have recalled 49 million vehicles with the airbags that can shoot out shrapnel in the event of an accident. 11 deaths and 184 injuries in the U.S. have been linked to these airbags. Due to this, Takata has been facing numerous lawsuits and investigations. A new report says that Takata is close to closing one of those investigations.
      The Wall Street Journal has learned from sources that Takata is in negotiations with the U.S. Justice Department about a possible settlement. The deal would see the Japanese supplier pleading guilty to criminal misconduct and paying a fine ranging from hundred of millions to $1 billion. The settlement could be finalized early next year, but sources say the timing could slip.
      Reaching an agreement with the Justice Department would put Takata in better standing when it comes to another supplier (possibly Autoliv) taking over the company. It would also close one door in a massive scandal.
      Source: Wall Street Journal (Subscription Required)

      View full article
    • William Maley
      GM News: U.S. Appeals Court Rules GM Has to Face Some Claims Dealing with the Ignition Switch
      By William Maley
      One of the groups that haven't been able to take any legal action against General Motors over the faulty ignition switch were those who bought the affected vehicles before the company announced bankruptcy in 2009. Last year, a bankruptcy judge said that New GM was shielded from liabiliites over the actions taken by Old GM.
       
      But today, the U.S. Second Circuit Court of Appeals in Manhattan reversed that decision. In the ruling, the court stated that New GM must face some of the claims from owners that arose from their actions before their bankruptcy.
       
      “We are reviewing the ruling and its impact. Even if some claims are ultimately allowed to proceed, the plaintiffs must still prove their cases," said GM spokesman Jim Cain in an email to the Wall Street Journal.
       
      This decision could expose GM to additional costs as it tries to move away from this mess. According to the ruling, the protection given to GM shielded them from up to $10 billion of liability claims.
       
      Source: Automotive News (Subscription Required), Wall Street Journal (Subscription Required)

      View full article

  • Posts

    • Robert Hall
      Hyundai News:2022 Hyundai Santa Cruz Is A Step Smaller Than A Midsize Truck

      By Robert Hall · Posted

      For shit like that I'd hire a landscaper, who would haul such content in a dump truck or trailer. 
    • balthazar
      Hyundai News:2022 Hyundai Santa Cruz Is A Step Smaller Than A Midsize Truck

      By balthazar · Posted

      You going to hand-shovel a ton & a half of wet stone into the back of a Suburban, trying to tarp the carpeted bottom & plastic sides of the interior to keep it from getting torn apart? Really? Re-read my post- people don't put LOOSE material of any considerable volume in a vehicle like a Suburban. Is it physically possible? Sure - but does it happen? But a lawn mower or a potted shrub or a few bags of mulch- a roofed SUV could handle as well as a 4-ft bed trucklette. The overlap in cargo capability of a 4-ft bed and a mid-size SUV is a LOT more than between a Suburban and a full-size pickup.  
    • surreal1272
      Hyundai News:2022 Hyundai Santa Cruz Is A Step Smaller Than A Midsize Truck

      By surreal1272 · Posted

      So while a tarp for your friends Infinite was okay, is not okay for a Suburban? That makes zero sense and that is the double talk I was talking about here. What you just said about the Suburban can be applied to the Infiniti and it actually makes a case for the Hyundai in the process. Again, being hung up on the bed size caused this. 
    • surreal1272
      Hyundai News:2022 Hyundai Santa Cruz Is A Step Smaller Than A Midsize Truck

      By surreal1272 · Posted

      Everything else (and a buttload of excuses by you) aside, I do find it amusing how you think bags of mulch don’t gets holes in them and leak everywhere like they tend to do. Quite frankly you have tried to play it both ways by touting Full size trucks on one hand while trying to say that SUVs are better suited for light work (they are not in this case) than the Santa Cruz while ignoring the fact that the SUV argument applies to full size trucks. This all started because of your “problem” with bed size which, quite honestly, seems to be your problem and your problem alone here but not everyone sees it as a problem and the positives have been pointed out in spades.     And I live in NC and have ZERO use for a snow blower. Thanks for playing though Balth but please don’t try and act like gas spillage inside a vehicle isn’t a issue (it is). Whether someone goes electric or not is 100% irrelevant and you are deflecting with that statement. And again, all of those efforts your Infiniti boy makes to accommodate loads in his SUV could by 99.9% mitigated and simplified by just having a small bed with which to carry those things without the follow up cleaning and tarp shaking lol. Seriously, stop trying to equate your needs with others here (or dropping your “friend” as an example that actually supported the need for something like the Hyundai).
    • Robert Hall
      Review: 2020 Hyundai Sonata Limited 1.6T and Sonata Limited Hybrid

      By Robert Hall · Posted

      A stylized yet generic appliance for generic people of suburbia.

  • Social Stream

  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

Support and Policies

Support

Meet the Staff

Advertising

Terms of Service

Privacy Policy

User Submitted Content

×
×
  • Create New...