Japanese air-bag maker Takata, one of the world’s biggest automotive suppliers, is preparing to file for bankruptcy as early as next week as it works toward a preliminary deal for financial backing from U.S. auto parts maker Key Safety Systems Inc., sources say for foreign media.
Unfortunately, bankruptcy can also affect Takata’s business in Romania.
The group has two subsidiaries on local market – Takata Romania and Takata Sibiu. The two legal entities have three plants that produce airbags, safety belts and steering wheels in Sibiu and Arad. According to data reported to the Ministry of Public Finance, Takata Romania last year had a turnover of RON 2.57 billion and a net profit of RON 112.81 million. At the same time, Takata Sibiu reported a turnover of RON 481.28 million and a profit of RON 18.65 million. The total number of Takata’s employees in Romania exceeds 7,000.
Takata has been working on finalizing a deal with Key as it faces billions in liabilities stemming from defective air bag inflators, the people said. Also at stake is USD 850 million owed by the Japanese airbag system maker to major global automakers under a settlement agreed to earlier this year.
Sources cautioned that a deal with Key may not be reached before Takata files for bankruptcy. The company plans to begin proceedings in both the United States and Japan.
Takata declined to comment.
Major global car manufacturers have expressed concern about the company filing for bankruptcy without a deal in place because of disruption it could cause to the production of replacement airbag inflators. More than 65 percent of 46.2 million recalled Takata airbag inflators in the United States have not been repaired.
Takata inflators can explode with excessive force, unleashing metal shrapnel inside cars and trucks, and have prompted the largest automotive recall in history.