The Takata corporation, by name, may be unfamiliar to most people. However, many people still remember the Airbag recall from many Japanese and other motor companies. From this recall, 53 million vehicles were eligible and the Takata corporation was fined $200 million by the National Highway Traffic Safety Administration(NHTSA).
At the time, the Takata corporation held 20% of the market, when injuries were starting to be reported due to the defects in the airbags. Honda later testified that they were aware of more than 100 injuries and 8 deaths in prior. In April, 2013, the Takata corporation thought the problem originated from one place: the Monclova Plant in Mexico. They recalled 3.6 million vehicles and in the November of 2014, BMW announced they would remove all orders from the Takata plant located in Germany.
In the June of 2014, the Takata corporation finally admitted that mishandled explosive propellants and chemicals caused the problem. Just a few days later, major motor companies like Nissan, Toyota, Mazda, BMW, and Ford further announced a recall for 3 million vehicles. On that very same day, the Takata corporation found the exact reason for the defect: Moisture that was seeping into the inflators, which disrupted normal functioning of the propellant.
The Takata corporation is now the record holder for the largest auto recall ever recorded in history. The NHTSA estimates up to 40 million additional inflators, adding even more to the 30 million already recalled. Furthermore, the Takata corporation has filed for bankruptcy protection in Japan and a Chapter 11 bankruptcy in the US.The remaining assets have been arranged to be sold to Key Safety Systems, based in Michigan but owned by the Chinese, for about $1.6 billion.