Takata Bankruptcy Would Cloud Auto Industry’s Biggest Recall
- Japanese air-bag supplier may run out of cash to replace parts
- Honda, Toyota and other companies face possible recall costs
Takata Fell 55 Percent on Bankruptcy Report
The expected bankruptcy of troubled air-bag maker Takata Corp. isn’t just a crisis for its employees and suppliers. It also throws a wild card into one of the biggest and most complicated recalls in automotive history.
The Japan-based auto supplier has pledged to recall and replace tens of millions of defective air-bag inflators used by 19 car and truck makers around the world, from Tesla Inc. to Toyota Motor Corp. A filing to restructure in U.S. bankruptcy court, which could come as early as Monday according to people familiar with the matter, doesn’t relieve a manufacturer of recall responsibilities. However, should its financial assets be exhausted before all the work is done, carmakers may have to cover the difference.