By TOM KRISHER /AP Auto Writer

DETROIT (AP) – Japanese air bag maker Takata Corp. is expected to file for bankruptcy protection in the U.S. and Tokyo on Monday.

Two people briefed on the matter say most of Takata’s assets will be sold to rival Key Safety Systems for $1.6 billion.

Takata, which was founded in 1933, couldn’t withstand expected hefty lawsuit verdicts and penalties it must pay for making faulty air bag inflators. The inflators can explode with too much force and hurl shrapnel into people riding in cars. At least 16 people have been killed worldwide.

The people say Key will get the Takata assets free of liability for the inflators. They didn’t want to be identified because the bankruptcy terms haven’t been made public.


(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Detroit

Best Places To See Indie Rock In DetroitIt's called Detroit Rock City for a reason.
Guide: Best Barbecue In Metro DetroitSometimes, nothing hits the spot like good barbecue.
Best Ice Cream Shops In Metro DetroitIt's getting warm outside! Take advantage of it.

Watch & Listen LIVE