How Will the Takata Bankruptcy Affect Its Airbag Recall?

Photo of an exploded airbagHave you heard of the Takata airbag recall? If not, then you need to keep reading. It is the largest automotive recall in history, and ignoring it could prove deadly. As of this writing, 12 people in the U.S. have allegedly lost their lives due to these defective airbags—worldwide 17 people have died. Over 180 individuals have also been injured by these safety devices. Worse yet, these airbags are in vehicles all over the industry. Now, financial problems plague this airbag manufacturer, but could a Takata bankruptcy help the situation or make it harder for your vehicle to get repaired?

What You Need to Know About the Takata Airbag Recall

It doesn’t matter if you own a Ferrari or a Ford, there is a chance that it could contain a Takata airbag. That’s because the world’s #1 manufacturer of airbags was Takata Corporation. This Japanese manufacturer supplied parts to automakers all over the planet—Honda being its top customer. So, when it was discovered that some of its airbag inflators could explode and shower drivers and passengers with metal shrapnel, there was a strong push for a worldwide recall.

Just a few days ago, Takata added 2.7 million more airbag inflators to its list of 70 million dangerous and defective safety devices. Turns out, a model of inflator previously thought safe was revealed to be just as dangerous by further testing. This information comes on the heels of a big announcement from Takata that has rocked the entire auto industry.

Will the Takata Bankruptcy Leave Dangerous Airbags on the Road?

On June 25th, Takata announced that it will be filing for bankruptcy in Japan and the U.S. This restructuring is a part of a deal the company worked out with Key Safety System (KSS), an automotive safety company based in Michigan. KSS will be buying most of Takata’s operation for $1.6 billion, which will go toward the paying fines and creditors. This of course won’t pay off the estimated $9 billion the company owes because of this recall.

In the end, it looks like automakers will wind up footing the bill for the Takata recall as government officials insist on the replacement of the faulty inflators. This could also put a time table on injury liability claims that have yet to be filed against the company in civil court. This means anybody who has been injured by these devices and not come forward may soon run out of time to file a lawsuit or join the Takata class action suit.

This message has been brought to you by the North Carolina product liability lawyers at Riddle & Brantley, LLP—where Justice Counts!



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