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June 23, 2017

Japanese OEMs line up to support Takata

As embattled Takata faces bankruptcy, Toyota, Nissan and Honda are among OEMs who will continue to support the company following a bankruptcy that could come as early as Monday (26 June).

By David Leggett

As embattled Takata faces bankruptcy, Toyota, Nissan and Honda are among OEMs who will continue to support the company following a bankruptcy that could come as early as Monday (26 June).

Nikkei reports that the three largest Japanese OEMs, as well as smaller manufacturers, have informed Takata that they will continue to do business based on existing contracts. The report said they would also speed up payments if necessary, to help with cash flow.

The Nikkei news agency noted that Honda has issued the most recalls of defective Takata airbag inflators among Japanese automakers, topping more than 50 million units.

Takata is also seeking bridging loans for working capital from Japanese banks.

The report also said that Takata plans to exit the market for airbag inflators after restructuring and will be excluded from Key Safety Systems’ proposed operations takeover.

The report also said that Takata has around 570 domestic suppliers, some of whom will face financial problems of their own following a Takata bankruptcy in Japan.

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