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.
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