Exploding airbag scandal pushes Japanese auto supplier Takata towards bankruptcy
A bankruptcy filing would clear the way for American autoparts maker Key Safety Systems, owned by China’s Ningbo Joyson Electronic, to take over the firm’s operations
Takata suffered another crushing collapse on Thursday, plummeting more than 50 per cent on fears the airbag maker at the centre of the auto industry’s biggest-ever safety recall is headed for bankruptcy.
The Tokyo-based car parts giant, facing lawsuits and huge recall-related costs over a bag defect linked to at least 16 deaths globally, has tumbled for four straight days.
It is now worth less than a quarter of its value from just a week ago when a report by Japan’s leading Nikkei business daily said it would seek bankruptcy protection and sell its assets to a US company.
At Thursday’s close, the embattled stock had plummeted 55 per cent to 110 yen ($1) from a day earlier.
“The shares are going to keep falling because the only buyers are day traders hoping to lock in gains from fluctuations in the price,” Hiroaki Hiwata, a strategist at Toyo Securities, said.
Another Nikkei report Thursday said Takata, with liabilities exceeding one trillion yen, would file for bankruptcy protection as early as Monday.