World Economy

Takata Files for Bankruptcy

Takata Files  for BankruptcyTakata Files  for Bankruptcy

Japan's crisis-hit car parts maker Takata filed for bankruptcy protection Monday and said its chief executive would quit after a deadly airbag crisis that triggered the auto industry's biggest ever safety recall, AFP reported. The company is facing lawsuits and huge costs over a defect blamed for at least 16 deaths and scores of injuries. The scandal affected almost every major global automaker, including Toyota and General Motors. US-based auto parts maker Key Safety Systems will buy Takata for an estimated $1.58 billion. Takata's chief executive Shigehisa Takada, whose grandfather started the company in 1933 as a textile maker, said he would resign once the takeover was complete. "I apologize from the bottom of my heart for causing trouble for everyone concerned," Takada told a press briefing. News reports have said Takata's liabilities would exceed one trillion yen ($9 billion) in what is the biggest bankruptcy filing for a Japanese manufacturer. Trading in Takata shares was suspended Monday after a week of wild volatility. The stock will be delisted from the Tokyo bourse late next month.


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