Did you know that the Takata recall is the largest in automotive history? It affects around one in seven vehicles on the road here in the United States. This deadly defect has only been fixed in one out of every five cars that have been recalled, and the auto industry only has until 2019 to complete all these repairs. But what happens if Takata isn’t around to make sure these repairs happen?
Can Takata Use Bankruptcy to Dodge Victim Lawsuits?
Bankruptcy is meant to help shield business owners from a failing business so they can try to build a new business later. It has helped prop up the economy, but it has also been misused to help companies reduce or dodge the debts they owe. Now some people are beginning to worry that this might be exactly what Takata is doing.
Reports are surfacing that Takata has plans to restructure as a part of its strategy to survive this massive recall. These plans include not only bankruptcy, but also the possibility of selling the company to another interested party. So far, the offers made by potential buyers have also included a restructuring under bankruptcy as a part of their deals, but government officials want to make sure that the Takata recall is properly carried out.
Senators Richard Blumenthal and Edward Markey have sent a letter to the National Highway Traffic Safety Administration (NHTSA) in order to prevent Takata from shirking its responsibilities to consumers. They want assurances from the agency that the millions of people who are affected by this recall won’t be stuck the bills from getting their defective airbags replaced. So the senators have asked NHTSA to provide a plan to prevent this from happening.
For now, there is still no sign that Takata cannot handle the financial burdens of the recall, but many fear that is only because auto manufacturers are footing most of the bill instead of Takata. However, those automakers claim that they will charge Takata for the repairs and losses they will suffer due to this recall. Do you think Takata will be able to handle the bill when it comes? Keep following our blog to find out, and don’t forget to log onto Twitter and Facebook to share your thoughts with the Macon car defect lawyers here at the McArthur Law Firm.