Takata files for bankruptcy

Beleaguered parts manufacturer Takata has formally filed for bankruptcy amid the biggest recall in automotive history.

The Japanese company, which is at the centre of a global recall affecting millions of defective airbag inflators used by 19 car and truck manufacturers, filed for bankruptcy protection on Monday in the US and Japan.

It also announced a takeover by Key Safety Systems for $A2.07 billion. Under the deal, Key Safety Systems is protected from liabilities relating to Takata’s faulty airbag inflator and any legal ramifications relating to Takata’s cover-up of the scandal.

Funds raised by the asset sale are set to go towards funding Takata’s production of replacement parts and its existing liabilities, which are still being calculated. Takata’s plants and facilities relating to the recall will be excluded from the sale.

Takata has pledged to recall and replace tens of millions of faulty airbags. Ordinarily, ammonium nitrate creates a small explosion that inflates air bags in a crash. But when exposed to high temperatures or humidity, the compound deteriorates and can burn too fast when ignited, causing the metal canister housing the compound to blow apart as a result.

More than 15 deaths have been linked to the Takata fault globally.

“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,” Takata chief executive Shigehisa Takada said in a press conference.

“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.”

After the legal and financial process is complete, what remains of Takata is likely to be wound down. Key Safety Systems, meanwhile, is projecting growth of 11,000 to 60,000 employees across 23 countries after the deal is complete.

The majority of Takata’s assets will be transferred to Key in the first quarter of 2018.

The list of Australian-delivered vehicles requiring at least one airbag replaced is now as follows:
BMW 3 Series 1998-2005
BMW 5 Series 2002-2005
BMW X5 2002-2005
Chrysler 300C 2005-2012
Chrysler Grand Voyager 2008-2010
Dodge Journey 2009-2010
Dodge RAM 2004-2010
Ferrari 458 Italia
Ferrari 458 Spider
Ferrari 458 Speciale/Speciale A
Ferrari California T
Ferrari FF
Ferrari F12 Berlinetta
Honda Accord 2001-2006
Honda Accord 2012
Honda Accord Euro 2004-2007
Honda Accord Euro 2012
Honda City 2009-2012
Honda Civic 2000
Honda Civic 2004-2011
Honda CR-V 2002-2008
Honda CR-V 2007-2011
Honda Insight 2010-12
Honda Jazz 2004-2009
Honda Jazz 2006-2012
Honda Jazz 2012-2014
Honda Jazz Hybrid 2012
Honda Legend 2007-2012
Honda MDX 2003-2006
Jeep Cherokee manual 2006
Jeep Wrangler manual 2006
Jeep Wrangler 2007-2012
Lexus IS 2005-11
Lexus IS 2012
Lexus LFA
Lexus SC430 2003-2007
Mazda2 2007-2014
Mazda6 2002-2007
Mazda B2500/2600 2002-2007
Mazda B Series 2006
Mazda BT-50 2006-2011
Mazda E-Series 2002-2007
Mazda T-Series 2002-2007
Mazda RX-8 2002-2007
Mazda RX-8 2003-2012
Mercedes-Benz SL 2014
Mercedes-Benz SLK 2014
Mitsubishi CH Lancer 2003-2008
Mitsubishi CY/CZ Lancer EVO 2003-2008
Mitsubishi ML and MN Triton 2007-2014
Nissan Maxima 2001-2007
Nissan Maxima (J31) 2007-2008
Nissan Micra 2010-2011
Nissan Navara 2001-2007
Nissan Navara (D22) 2007-2012
Nissan Navara (D40) 2008-2014
Nissan Patrol 2001-2007
Nissan Patrol (Y61) 2007-2012
Nissan Pulsar 2001-2007
Nissan Tiida (C11) 2006-2012
Nissan X-TRAIL 2001-2007
Nissan X-TRAIL (T30) 2007-2008
Subaru Impreza 2004-2007
Subaru Impreza 2008-2009
Subaru Forester 2009
Subaru Liberty, Outback, Tribeca – 2004-2009
Toyota Avensis 2003-2009
Toyota Corolla 2003-2009
Toyota Echo 2003-2005
Toyota RAV4 2003-2005
Toyota Yaris 2005-2011