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Takata crumbles under over $10bn liabilities, files for bankruptcy

Takata, the 84-year-old Japanese automotive supplier, may have hit the end of the road as the company has filed for bankruptcy in Japan and the U.S, according to a report by Financial Times (FT).

The company, which had been overwhelmed by many lawsuits and over $10bn liabilities as costs of the massive recall of its faulty airbags to different automakers, according to the report,  announced its decision on Sunday. Takata is renowned for developing Japan’s first driver-side airbag system in the 80s with Honda but ran into trouble waters over its faulty airbags inflators, leading to the recall of over 100 million airbags for replacement in what has become the largest safety recalls in automotive history.

Financial Times reports that the takeover of the troubled automotive supplier’s assets may soon follow the declaration as a rival US airbag manufacturer, Key Safety Systems, owned by Ningbo Joyson, a Chinese, is already working on a  $1.6bn takeover bid.

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