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[h=1]Q&A: A look at Takata's bankruptcy and air bag recalls[/h]
Japanese air bag maker Takata Corp. is expected to file for bankruptcy protection in Japan and the U.S. on Monday, having been dragged into financial trouble by millions of faulty air bag inflators that can kill or injure people.
The inflators, which fill up air bags in the event of a crash, can explode with too much force and spew metal shrapnel. At least 16 deaths worldwide and more than 180 injuries are blamed on the inflators. They also touched off the largest automotive recall in U.S. history, that began in 2008, with up to 69 million inflators and 42 million vehicles affected. Worldwide, about 100 million inflators are being recalled.
What car owners need to know about the massive recall:
Q&A: A look at Takata's bankruptcy and air bag recalls - ABC News
 

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I wondered how long Takata would last. Even though the car manufacturers are on the hook for these recalls I suspect they all have contracts that indemnify them for faulty parts, which translates into Takata having to reimburse the manufacturers for each airbag that gets replaced.
 

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The article sort of spells out where the money will come from.

Yes. Automakers are ultimately responsible for the safety of their vehicles, and they have been funding the recalls.
Takata's assets are expected to be sold for $1.6 billion to a rival company, Key Safety Systems, and part of Takata will remain under a different name to make replacement inflators for the recalls. Money from the sale will go to pay claims against Takata, including a court-ordered $850 million that will reimburse automakers for their expenses.
Another $125 million will go to victims and Takata will pay a $25 million fine to the U.S. government. It's not clear yet where the rest of the $1.6 billion will go.
 

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Not sure if this law was changed, throughout my long history, we were responsible for every component we purchased. Was engineering job to test these products before they were approved for purchase.

Takata just made the airbags, what about all the hardware that surrounds it? This was done by the OEM's, and why didn't they test these airbags first before making these huge purchases?

Purchasing was always given us components to test, their main motivation was the price was low. No way are we approving this, unless some bean counter stepped in.

In any event, not defending Takata, but for years, it was the users fault for putting junk into their products and were even responsible for the liability.
 

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Not sure if this law was changed, throughout my long history, we were responsible for every component we purchased. Was engineering job to test these products before they were approved for purchase.

Takata just made the airbags, what about all the hardware that surrounds it? This was done by the OEM's, and why didn't they test these airbags first before making these huge purchases?

Purchasing was always given us components to test, their main motivation was the price was low. No way are we approving this, unless some bean counter stepped in.

In any event, not defending Takata, but for years, it was the users fault for putting junk into their products and were even responsible for the liability.
Normally you would be right, but the fact is that this failure was one that wouldn't show up in testing, even for several years. I don't know if this is a design or manufacturing flaw but it is an internal flaw in the airbag inflators - it doesn't matter what hardware is around the inflator.
 

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Takata just made the airbags, what about all the hardware that surrounds it? This was done by the OEM's, and why didn't they test these airbags first before making these huge purchases?
1) My understanding is this problem didn't show up until the explosive had aged. That's why they're starting the recall in areas of high humidity.

2) Yes, the manufacturer is on the hook, but in turn they can (and do) go after the supplier. One of the biggest fears was that Takata would go under and leave the full cost on the car makers.
 

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Discussion Starter · #7 ·
1) My understanding is this problem didn't show up until the explosive had aged. That's why they're starting the recall in areas of high humidity.

2) Yes, the manufacturer is on the hook, but in turn they can (and do) go after the supplier. One of the biggest fears was that Takata would go under and leave the full cost on the car makers.
Its just not as easy as you would think recovering assets from a company that went bankrupt when there aren't enough. Now they are saying the total projected cost 2 to 4 years out may be 5 Billion which the automakers will have to eat.
Takata files for bankruptcy in US, Japan and likely selling assets to US auto parts supplier
 

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What about governments? These are the guys that made these things law, didn't they make the standards has to how these things should be made?

Short friend ended up in the hospital for three months with a broken neck caused by an airbag in a light fender bender accident, good thing it didn't rip his spinal cord.

Historically just as many kids were killed by these things as adults refusing to wear their safety belts. So a law was made, kids of less than a certain height/weight had to ride in the rear seats. What about short adults? Reason why four of my kids have to buy a much larger vehicle with an extra seat in them, getting 30-50% fuel economy, but no extra tax deduction.

The way it is now with a kid, pay about 97 cents less per day in income taxes, nothing extra for being forced to drive a much larger vehicle. Also heard about people being killed or severely injured by their own fist driving cross handed, no warning signs on the steering wheel for this.

One reason why I preferred to drive a Cadillac, extra safety features, a lot more steel in the doors and a collapsible steering wheel. Looking at a Cadillac CTS, Lexus, or whatever, no different from the Cruze, same unibody designed by law to DOT standards. No more 5 mph bumpers, ha, don't even get bumpers anymore. .1 mph can shatter it, EPA forces us to use the same cheap plastic in the interior to make recycling easier.

Those rocker panels sure rust out quick, no law about making them rust proof, vehicles sag in the center. Doing a bit better on shock towers, front wheel can fall off.

Even after all this, airbags are only good up to 25 mph if not wearing your belts, 40 mph if you are. Would you even trust your congressman to change the oil in your vehicle? I sure wouldn't, but these are the guys making laws.
 
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