Airbag maker declares bankruptcy

Weighed down by lawsuits and the largest auto parts recall in history, Japanese air bag maker Takata began the process of seeking bankruptcy protection Sunday in in the United States and Japan.

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The manufacturer also said it would sell many of its assets to Michigan-based Key Safety Systems.

The recall has affected many local auto dealers and owners for months.

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“This will be a long process under the best of circumstances, and Takata going bankrupt, though not surprising, only adds to a potential increase in the time it takes to replace tens of millions of airbags,” said Karl Brauer, executive publisher for Autotrader & Kelley Blue Book. “It’s likely every automaker involved in this recall will have to subsidize the process because the value of Takata’s assets isn’t enough to cover the costs of this recall. There are still far more questions than answers on this topic.”

Media reports are calling this the biggest Japanese corporate bankruptcy in manufacturing.

To find if your vehicle is under recall, you can visit the National Highway Traffic Safety site.

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