The losses Takata Corp. have suffered due to the recall of its defective airbag inflators just keeps growing. Estimates are now in the billions of dollars, and the depth of the hole seems to be growing. Is there anyway Takata could survive this nightmare?
Is a Takata Bankruptcy About to Begin?
The faulty airbag maker is on the ropes, so it has started eyeing bankruptcy as a solution to the money problems caused by the largest automotive recall in history. A few months ago, restructuring lawyers were consulted by the company. Plus, several companies looking at buying the ailing manufacturer have made the company’s bankruptcy a part of their business plans. It looks like there’s no escaping bankruptcy for Takata, but how will that affect you?
Senators Richard Blumenthal and Edward Markey are worried for owners of vehicles with defective Takata airbags. They’re concerned that these consumers could be left high and dry if the company declares bankruptcy. Such a declaration would give Takata certain legal protections, but would those protections slow down or halt production of replacement parts?
The senators wanted answers so they sent letters to Takata and to the National Highway Traffic Safety Administration for assurances. So far, the government officials claim that Takata will still have a responsibility to consumers despite and declaration of bankruptcy. However, they cannot confirm whether such a filing would slow the production of replacement parts.
Do you think a bankruptcy will dramatically affect this nightmare recall? Will automakers pick up the slack if Takata can’t repair all of these defective inflators? Stick with the defective auto parts lawyers here at Colson Hicks Eidson to find out. Follow our blog, Facebook, and Twitter for more news and info you didn’t know about the Takata recall and other threats to your safety.