Report: Takata Will Stop Making Airbags after Bankruptcy

Beleaguered supplier Takata Corp. will phase out airbag production after it completes an expected bankruptcy restructuring, sources tell Reuters.

The company is expected to be taken over by U.S.-based Key Safety Systems Inc., which would relaunch airbag production under the KSS brand. The news service’s sources say Takata would complete existing contracts, which will expire in about 2020.

Takata currently is making next-generation replacement airbag inflators for its older, explosion-prone units. Some 100 million of the latter inflators are being recalled worldwide by 19 carmakers. The older devices have been blamed for at least 16 fatalities.

The bankruptcy, which is likely to be announced next week, would lift much of Takata’s potential liability for the recalls.