Takata Corp. Has Just Filed For Bankruptcy Protection

Takata Corp., the Japanese air bag maker, announced on Monday that it has filed for bankruptcy protection in the country’s capital.

The company’s faulty air bag inflators have been linked to the deaths of at least 16 people and at least 180 injuries. In order to continue supplying replacements, bankruptcy was the only option.

Takata’s infators were found to explode with too much force and when filled up in an airbag, released shrapnel. 100 million inflators have been recalled worldwide with 69 million in the U.S., affecting 42 million vehicles. In the U.S. it’s the largest automotive recall in the country’s history.

According to Takata vice president Hiroshi Shimizu, already more than 70% of the airbags that were recalled in Japan have been replaced, and 36% in the U.S. have been replaced.

In a statement, Takada said, “As a maker of safety parts for the automobile industry, our failure to maintain a stable supply would have a major impact across the industry.”

Key Safety Systems, a Chinese owned rival that’s based in Detroit, will be buying most of the company’s assets for around $1.6 billion. Key has said it wouldn’t cut any Takata jobs nor close any of the facilities. It is unknown if the Takata name will continue.