13 automakers to provide up to $130 million for Takata's U.S. settlement

BUSINESS

13 automakers to provide up to $130 million for Takata’s U.S. settlement

A Ford sign is seen last year at an auto dealership, in Hialeah, Florida. Ford and U.S. government safety regulators are telling the owners of 33,428 Ranger pickup trucks in North America not to drive them because they have Takata air bag inflators 'that are an immediate risk to safety.' A company investigation into Ranger inflators from the 2006 model year found test results showing that more inflators had ruptured or recorded high internal pressure readings, company spokeswoman Elizabeth Weigandt said Monday. | AP

Reuters

Feb 14, 2018

WILMINGTON, DELAWARE – A group of 13 automakers will contribute as much as $130 million to compensate those injured by faulty Takata Corp. air bag inflators as part of a deal to resolve the Japanese company’s bankruptcy, a U.S. plaintiffs’ attorney said.

The agreement clears the way for the sale of Takata’s noninflator business to Key Safety Systems, a unit of China’s Ningo Joyson Electric Corp., for $1.6 billion, helping to ensure a steady supply of car parts for the world’s biggest automakers.

Takata and its U.S. unit, TK Holdings Inc., filed for bankruptcy last year in the wake of the world’s largest automotive safety recall, triggered by air bag inflators that can explode with excessive force, unleashing metal shrapnel inside cars and trucks.