The expected bankruptcy of troubled air-bag maker Takata Corp. isn't just a crisis for its employees and suppliers. It also throws a wild card into one of the biggest and most complicated recalls in automotive history.
The Japan-based auto supplier has pledged to recall and replace tens of millions of defective air-bag inflators used by 19 car and truck makers around the world, from Tesla Inc. to Toyota Motor Corp. Takata on Monday is expected to file for bankruptcy protection and announce a takeover offer from Key Safety Systems Inc. for about ¥180 billion ($1.62 billion), according to people familiar with the matter, who asked not to be identified because the information is private.
A filing to restructure doesn't relieve a manufacturer of recall responsibilities. However, should its financial assets be exhausted before all the work is done, carmakers may have to cover the difference.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.