Takata, the well-known and bankrupt airbag inflator company, will be asking to have lawsuits against automakers that have used their inflators to be suspended.
Airbag inflator producer Takata and its U.S. unit, TK Holdings Inc, have been facing a lot of scrutiny for recent efforts to get lawsuits against automakers suspended.
This all stemmed from the fact that their inflators were related to a number of injuries, since their defective airbags were known to sometimes explode, and this in turn led to the largest recall in automotive history and several lawsuits.
It was reported that the company had to file for bankruptcy in June due to the fact that it faced billions of dollar in liabilities.
By declaring bankruptcy, TK Holdings stayed lawsuits against the company for various reasons, including multiple deaths and injuries. Then, last month, the company tried to suspend the lawsuits against automakers that used their products, which some people see as being an abuse of bankruptcy laws that would “benefit of all of the world’s largest automobile manufacturers”.
The company pushed for the suspension and cited that it would be best so that their management wouldn’t get distracted while they try to sell the company’s viable operations to Key Safety Systems for over a billion dollars.
This action was supported by automakers BMW, Ford Motors, and Toyota motors, as they felt that letting Takata restructure would be in the best interest for customers.
So far, 18 deaths and 180 injuries have been linked to the defective airbag inflators, and by 2019 around 125 million vehicles will be recalled because of the possibility that they have potentially deadly airbags.