Wednesday, 23 August, 2017

Takata, brought down by airbag crisis, files for bankruptcy

Air Miles Air Miles is making changes to its program
Mae Harvey | 27 June, 2017, 01:02

"Because there is so much work to be done, there is a real concern that there won't be enough money to complete all these recalls and therefore the auto manufacturers themselves will have to pick up most of the costs".

The Tokyo-based company and its units filed for creditor protection in the United States and Japan.

US autoparts maker Key Safety Systems plans to expand in Japan after its takeover of bankrupt air-bag manufacturer Takata, said company chief executive Jason Luo on Monday.

Michigan-based-but-Chinese-backed Key Safety Systems announced separately that it would work with Takata to develop a restructuring plan allowing the USA company to purchase the Japanese company's assets and operations around the world for $1.59 billion.

October - NHTSA expands US recall to 7.8 million vehicles.

"At a board meeting on June 26, our company made a decision to begin procedures in filing for bankruptcy protection", Takata said in a statement after making the filing with the Tokyo District Court.

"We're in a very hard situation, and we had to find ways to keep supplying our products", Takada said, according to the Associated Press.

The company said that "We're in a very hard situation, and we had to find ways to keep supplying our products", and "As a maker of safety parts for the automobile industry, our failure to maintain a stable supply would have a major impact on the industry". Like other Japanese automakers, Honda said it anticipated difficulties in recovering the bulk of its claims.

Key Safety Systems is a subsidiary of China's Ningbo Joyson Electronic.

Trading in Takata shares was suspended at the opening of the stock market Monday after a week of massive volatility and the Tokyo Stock Exchange said it would delist Takata on July 27. It is responsible for billions of dollars to banks and automakers for the costs of replacing the parts. As part of the bankruptcy protection plans, KSS would acquire all of Takata's assets barring certain assets and operations related to the airbag inflators involved in the global recall in the planned deal, the two companies said. "You can't have the largest recall in the history of the automobile that takes years to take care of, and not have stigma attached to your name".

"The fact that they appear to have reached an agreement to sell the assets to KSS should enable this to continue", she said.

UK finds 34 high-rise apartment buildings with unsafe siding
Frank notes that officials estimate it will take three to four weeks to make the buildings safe. But 83 households had refused to leave by Saturday morning.

China talks focusing on North Korean threat
South Korea's Defense Ministry said the bombers engaged in routine exercises with its fighter jets aimed at deterring the North. Last week, Tillerson told a Senate hearing that China's efforts on North Korea had been "uneven".

Some House Democrats mull over how to oust Pelosi as leader
Millions were spent in Georgia with ads linking Pelosi to Jon Ossoff , who lost to Republican Karen Handel on Tuesday. The solution to these problems, Ryan maintains, lies in changing leadership and widening the party's appeal.

The list of high-rise apartment towers in Britain that have failed fire safety tests grew to 60, officials said Sunday, revealing the mounting challenge the government faces in the aftermath of London's Grenfell Tower fire tragedy.

Japan Credit Rating Agency cut Takata's credit rating to default on Monday.

The company has been struggling since its defective airbags led to recalls of tens of millions of vehicles.

It also faces potential liabilities from class action lawsuits in the United States, Canada and other countries.

KSS will buy almost all of Takata's assets, except for some assets and operations linked to Takata's problematic "phase-stabilised ammonium nitrate" airbag inflators, the firm said.

The specific number of faulty inflators is unknown, but since 2008, some 100 million inflators worldwide have been recalled.

Because of the size of the recall, some vehicle owners face lengthy waits for replacement parts, and are still operating their cars anxious that the air bag could malfunction in a crash.

The suspect inflators use a ammonium nitrate chemistry that can break down and become unstable over long periods in hot, humid conditions. Of that amount, $850 million goes to automakers to help cover their costs from the recalls. The money will be paid in various accounts with $850 million going to auto manufacturers to fix the risky airbags, $125 million to the victims, and $25 million to the government. One 26-year-old plaintiff will never be able to smile due to nerve damage, his attorney says. Settlement agreements with Toyota, Subaru, BMW and Mazda already have won preliminary court approval, Peter Prieto noted. But the safety devices relied on a faulty inflator that when activated can explode and send shrapnel into the vehicle.

Seko said he hopes that Key Safety Systems Inc. will fix Takata's battered finances and that he "expects a quick turnaround".

Toyota said its claims against Takata "are at the risk of becoming uncollectable or being delayed".

Takata's airbags are linked to a minimum of 17 deaths around the world. Takata says it is seeking US$1.6 billion in aid from KSS, which will allow Takata to continue to operate without interruptions.

Recommended

  • Jaguar launches 300bhp petrol engine for XE, XF and F-Pace

    Jaguar launches 300bhp petrol engine for XE, XF and F-Pace

    Jaguar's rear-wheel drive XF gets there in 5.4 seconds, just three tenths off the pace of the 380 hp supercharged V6. It already employs 1,400 people and is now being expanded to a £1bn, 2 million sq ft, facility.
    E3 2017: Microsoft isn't making a profit on the Xbox One X

    E3 2017: Microsoft isn't making a profit on the Xbox One X

    Now, despite being tagged by many as Microsoft's most powerful console ever, it fails to deliver on one thing, virtual reality. "If you just look at the specs of what this box is, it's in a different league than any other console that's out there".

    French see no one to counter Macron, set to sweep parliament

    His party fielded newcomers in around 200 constituencies, some of whom felled long-sitting former ministers at the first round. He voted for Macron's party, then brought his kids to play in the fountains of a Paris park on an extraordinary spring day.
  • Boris Johnson calling for end to blockade of Qatar

    Boris Johnson calling for end to blockade of Qatar

    After meeting Qatari foreign minister Mohammed al Thani, Mr Johnson urged Qatar "to take seriously their neighbours' concerns". Transporting the cows could take as many as 60 Qatar Airways flights from the USA and Australia, where he bought the cows.
    Texas mom says she left 2 kids in hot car as punishment

    Texas mom says she left 2 kids in hot car as punishment

    As for Randolph, she made a decision to go back inside the house, smoke marijuana, and take a two or three-hour nap. The incident happened in late May, when she initially told police the children locked themselves inside the auto .
    Ivanka Trump Ordered to Testify in Dispute With Shoe Company

    Ivanka Trump Ordered to Testify in Dispute With Shoe Company

    Aquazzura requested to question Trump before a trial, but her legal team asked the judge to rule that she doesn't have to testify. Adding, "While that declaration does assert a lack of personal knowledge of the design at issue, plaintiff asserts otherwise".
  • Turkey rejects Gulf Arab states' demands over its Qatar base

    Turkey rejects Gulf Arab states' demands over its Qatar base

    Qatar is a member of the Gulf Cooperation Council with Bahrain , Kuwait , Oman, Saudi Arabia and the UAE. For the following 10 years, Qatar would be monitored annually for compliance.
    Happy with my performance: Kidambi Srikanth after winning Australian Open Super Series

    Happy with my performance: Kidambi Srikanth after winning Australian Open Super Series

    Take a bow, Srikanth! Srikanth has previously reached the final of the Singapore Open and Indonesia Open. In the first game, the 24-year-old Srikanth played a ideal net game which troubled Long.
    Michelle Carter Found Guilty Of Involuntary Manslaughter

    Michelle Carter Found Guilty Of Involuntary Manslaughter

    Boardman also said Carter was scared she would get in trouble when she discovered the police had access to Roy's phone. Roy, since she had put him into that toxic environment, constituted, each and all, wanton and reckless conduct".
  • Seven die in cable car crash in held Kashmir; 150 rescued

    They accident took place at the famous ski-resort of Gulmarg in north Kashmir's Baramulla district, police said. The Andraskars, residents of Shalimar Bagh in northwest Delhi , were in Jammu and Kashmir on a family holiday.

    North Korea warns against following 'psychopath' Trump

    But he was arrested in Pyongyang in January 2016 and, as we have reported , was accused of trying to steal a propaganda poster. The casket of Otto Warmbier is carried from Wyoming High School after his funeral, Thursday, June 22, 2017, in Wyoming, Ohio.
    NCR's second airport to come up in Jewar

    NCR's second airport to come up in Jewar

    The UP government had in April sought a fresh "technical evaluation" for the proposed global airport at Jewar in the state. In 2001, the then UP chief minister Rajnath Singh proposed the idea of an airport located in Greater Noida.

Donovan Mitchell drafted 13th in the 2017 NBA Draft The Jazz traded the No. 30 and No. 42 picks to the Los Angeles Lakers for the No. 28 pick, North Carolina forward Tony Bradley. He averaged 13.7 points last season but saw his minutes and shooting percentages drop dramatically from 2015-16.

Xbox One X vs. PS4 Pro Specs, Features Xbox One X vs. PS4 Pro Specs, Features Microsoft repeatedly mentioned that Xbox One X would be a premium console for a segment of consumers looking for 4K games. Microsoft has finally launched their ambitious bid to claim the lead in 4K gaming with the launch of Microsoft Xbox One X.

Spicer Hasn't Asked Trump If Russians Meddled in 2016 Campaign Spicer Hasn't Asked Trump If Russians Meddled in 2016 Campaign The reporter, incredulous, pointed out that there were 16 intelligence reports that had claimed Russian involvement. In the past, Trump has referred to the investigation into Russian interference as "fake news".

Ansel Elgort studied hard to do sign language justice in Baby Driver Ansel Elgort studied hard to do sign language justice in Baby Driver The film will hit theaters in North America almost two months earlier than originally planned, moving to June 28 from August 11. Foxx is particularly strong, as he keeps Bats just on the fine line between sanity and insanity.

Shooting At GOP Baseball Practice Seems To Have Been Spontaneous, FBI Says Shooting At GOP Baseball Practice Seems To Have Been Spontaneous, FBI Says The details surrounding the Virginia shooting continue to unravel and reveal that the attack could have been much more lethal. Before he left, police were called to his home after neighbors complained that he was doing target practice on his property.

Anil Kumble wanted say in the playing XI, claims BCCI official Anil Kumble wanted say in the playing XI, claims BCCI official The problem with Indian cricket today has more to do with administration than actual deficiencies in the team. To put someone of a similar mind-set in a position where he's advising the captain is inviting confrontation.

Portugal weighs resting Ronaldo for New Zealand game Portugal weighs resting Ronaldo for New Zealand game Captain and reigning Ballon d'Or holder, Cristiano Ronaldo put Portugal in front with a well struck penalty after 33 minutes.

MTV Beats urges people to step up this World Blood Donor Day MTV Beats urges people to step up this World Blood Donor Day You should not be suffering from any infectious (such as a cold or flu) or chronic diseases (such as diabetes). Donating blood regularly has proved beneficial not only for the recipient but also the donor.

Federer advances to his 11th Halle final Federer won 26 of 28 of his first-serve points, clinching his 16th grass-court title after only 53 minutes with a backhand volley victor .

AP analysis: Pennsylvania gerrymander gave GOP a big boost AP analysis: Pennsylvania gerrymander gave GOP a big boost The "efficiency gap" formula creates a way to measure whether gerrymandering has helped a political party extend its power. House elections, though experts caution those measurements are less statistically meaningful in states with few districts.

Lewis Hamilton snatches pole from Valtteri Bottas in Baku The British driver's 66th pole moved him one ahead of Ayrton Senna and just two behind Michael Schumacher's record of 68. It was a lot of pressure. "It was disappointing - I was going for the pole", Bottas said in parc ferme after qualifying.

Rangers Trade Stepan and Raanta to Coyotes Rangers Trade Stepan and Raanta to Coyotes The Islanders now have the extra three significant draft picks and Hamonic's $3.857 million in salary-cap space to work with. Raanta was solid in his role of understudy to Henrik Lundqvist after being acquired from the Blackhawks two seasons ago.

1 winning Powerball ticket sold in California worth $447M 1 winning Powerball ticket sold in California worth $447M The deli sold the winning ticket for Saturday's $447.8 million grand prize drawing, the 10th largest lottery prize in US history. This big score will come in handy for Alberee's family, after his was diagnosed with pulmonary fibrosis earlier this year.

Parade of forwards at top of NHL draft Parade of forwards at top of NHL draft But they promptly moved back three spots in a deal with Dallas in the first of three trades announced during the first round. Barratt, a "kid from Bristol, Connecticut", was overcome with emotion when he heard his name called.

Off-duty black St. Louis cop mistakenly shot by white cop Off-duty black St. Louis cop mistakenly shot by white cop Louis Post-Dispatch, a stolen auto crashed near the off-duty officer's home, and he came outside with his service weapon to help. Louis cop was accidentally shot by a colleague as a gun battle raged nearby between police and a band of suspected auto thieves.