Auto parts manufacturer Takata changes ownership

The Japanese company Takata, with manufacturing facilities on four continents, has sold most of its factories. This should play a major role in protecting against creditors in the US and Japan. The new owner promises that no one will lose their job.

Defective gas generators in Takata airbags have caused the world a dozen deaths. The total number of cars requiring replacement of airbags has reached 42 million. The costs of such a large campaign are enormous, confidence in the company is diminishing, and its bottom line is deteriorating.

In the last fiscal year (April 1, 2016 to March 31, 2017), Takata recorded over 108 billion yen (about $ 965 million) in losses. Compared to the previous fiscal year, the extraordinary losses were almost three times higher and the net loss increased more than six times. The region of the Americas was the largest loss, with revenue declining 15.1 percent to 290.6 billion yen.

Takata decided to apply for credit protection in Japan and the United States, and also to sell most of its factories to the American company Ningbo Joyson Electronic Corp. The deal will be closed in the first quarter of 2018 and will cost 175 billion yen or $ 1.588 billion.

Although Takata has been affected by the global impact of airbag issues, it has a strong educated work base, large geographic reach, and products that do not diminish in value, such as steering wheels, seat belts. The new company will employ 60,000 people in 23 countries.