Takata files for bankruptcy, selling assets to Michigan company
Shizuo Kambayashi / AP
Takata, the Japanese auto parts manufacturer whose defective airbags have led to at least 14 deaths and 70 million recalls in the United States alone, announced the sale of its factories and operations to a Chinese-American rival, Key Safety Systems, and filed for bankruptcy in both the U.S. and Japan, per the NYT.
Think back: After denying that its airbags were faulty and fabricating test results to hide the issue, Takata agreed to pay fines and compensation totaling more than $1 billion earlier this year following a Department of Justice investigation.
The ramifications: Pending regulatory approval, the bankruptcy deal might short Takata's creditors — including some of the world's largest automakers, like Honda — out of millions of dollars.