Is there some legal loophole about all this liability tagged to the airbags ( replacing oll the defects and pating for the injuries and lives lost ) that will disappear if the company sells out ?
I can’t see how they can possibly HOPE to sell . .or anyone would want to buy . . all that impending cost.
Would bankruptcy neagate the liability as well ?
Hopefully some one of you more knoledgeable in corperate law might have an answer.
( I just know one thing about corperate promises. The ‘‘lifetime’’ warranty I bought and paid for died with the original company as my amplifier brand, Acoustic Control Corperation, sold out years ago. The new company still sells amps with that name on there BUT , since it’s not the same company . . they will not honor the 1973 lifetime warranty. )
Glad they saved your Brother DB,as for me they can save the pyrotechnics for the 4th of July,I looked at a picture of a car crash this morning with 6 people all buckled in,the only 2 seriously injured people were the two "protected " by the airbags ,Keep the "airbombs and give me a rollover structure and harness anyday(pretty soon NASCAR and Schoolbuses will have to have airbags)
@“ken green”, anyone buying into Takata would only do so if they thought there was a good chance of making money on the deal. KKR has a long history of doing this sort of thing and I wouldn’t be surprised if they make a handsome return for buying a part of Takata. They are the largest manufacturer of automotive airbags and that is a very large market. I don’t think KKR is buying the whole company and may have shielded themselves in a contract to purchase the part they bought. KKR is providing working capital to help Takata get through the replacement process and then will sell their part of the company for that big return they expect.
I think its a little complex because the company is in Japan not in the US. Plus it was a component part of a car so I think first the manufacturer would be on the hook for liability, then the manufacturer would need to go after Takata. But yeah, if they are out of business, they are out of business. No idea what Japanese bankruptcy law is but it seems like they are still willing to keep on producing but need a partner. If they bailed out now, who in the future would buy what they’re selling? They’ve got to have product liability insurance though so wonder who that is? They must be shaking in their boots.