Takata Files For Bankruptcy Protection


WATER PROBLEMS FOR JAPANESE AIRBAG MAKER TAKATA. THE COMPANY FILED FOR BANKRUPT THE BECAUSE OF THE COST RELATED TO THE AIRBAG RECALL AS WELL AS SEVERAL LAWSUITS. TAKATA RECALLED AIRBAGS WORLDWIDE AFTER IT WAS DETERMINED THEY COULD EXPLODE WITH TOO MUCH FORCE WHICH WOULD THEN SEND SHRAPNEL FLYING INTO PASSENGERS. AT LEAST 16 DEATHS HAVE BEEN LINKED TO THE AIRBAGS. WE HAVE DETAILS HIM WITH THE BANKRUPTCY FILING MEANS FOR CONSUMERS. Reporter: TAKATA CHAIRMAN PROUD DEEPLY AND APOLOGIZE FROM THE BOTTOM OF HIS HEART AS HIS COMPANY FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN BOTH JAPAN AND THE UNITED STATES ON MONDAY. TAKATA HAS HAD PROBLEMS WITH THE AIRBAGS AND THERE HAS BEEN A MASSIVE RECALL. Reporter: THE FAULTY AIRBAGS WERE RECALLED AFTER EVIDENCE THAT SOME WOULD EXPLODE ON IMPACT, SENDING SHRAPNEL INTO VICTIMS, INJURING INSTEAD OF SAVING THEM. TAKATA IS HAVING TROUBLE BECAUSE IT CANNOT PAY FOR ALL THE COSTS OF THE RECALLED. Reporter: MICHAEL SHINER IS A BANKRUPTCY ATTORNEY. AS USUAL, HE SAYS, IT COMES DOWN TO MONEY. THE PRINCIPAL CREDITORS ARE ALL PRIMARILY AUTO MANUFACTURERS TO WHOM TAKATA OWES REPLACEMENT AIRBAGS. WHAT THIS IS REALLY ABOUT IS ULTIMATELY WHO IS GOING TO BEAR THE COST OF THESE RECALLS. Reporter: THE COST OF REPLACING THE TENS OF MILLIONS OF TAKATA AIRBAGS STILL IN VEHICLES AROUND THE WORLD IS ESTIMATED AT $5 BILLION. ONLY 35% OF AFFECTED CARDS HAVE HAD NEW AIRBAGS INSTALLED. BUT EVEN IF TAKATA GETS OFF THE HOOK, CONSUMERS SHOULD BE OKAY. AS CONSUMERS, IT IS YOUR AUTO MANUFACTURERS OBLIGATION TO FIX ANY DEFECTS WITH YOUR VEHICLE REGARDLESS OF WHO IS RESPONSIBLE FOR THAT THE FACT. Reporter: SO IF TAKATA

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