Speaking of "Engineering Failures", Takata has declared bankruptcy...
Speaking of "Engineering Failures", Takata has declared bankruptcy...
(OP)
Now who will be responsible for replacing the remaining defective airbags? I read somewhere recently that only something like 40% or so of the defective airbags on the road in the US have been replaced and that the rest was waiting for replacement parts. Will those parts now be forthcoming and who will be paying for them?
Air-bag maker Takata files for bankruptcy protection
http://www.marketwatch.com/story/air-bag-maker-tak...
John R. Baker, P.E. (ret)
EX-Product 'Evangelist'
Irvine, CA
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Air-bag maker Takata files for bankruptcy protection
http://www.marketwatch.com/story/air-bag-maker-tak...
John R. Baker, P.E. (ret)
EX-Product 'Evangelist'
Irvine, CA
Siemens PLM:
UG/NX Museum:
The secret of life is not finding someone to live with
It's finding someone you can't live without





RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
STF
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
The vehicle OEMs (e.g. Toyota, Honda, etc.) are the responsible parties.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
John R. Baker, P.E. (ret)
EX-Product 'Evangelist'
Irvine, CA
Siemens PLM:
UG/NX Museum:
The secret of life is not finding someone to live with
It's finding someone you can't live without
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
This is an ongoing liability, and those plants will have to make the replacements.
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P.E. Metallurgy, Plymouth Tube
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
Dik
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
TTFN (ta ta for now)
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RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
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P.E. Metallurgy, Plymouth Tube
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
https://www.wsj.com/articles/bankrupt-air-bag-make...
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P.E. Metallurgy, Plymouth Tube
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
Cheers
Greg Locock
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RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
In my experience with recalls- the OEM is legally responsible, but their contracts with suppliers dictate that suppliers absorb recall costs due to defective parts, and those contracts almost always stipulate that mergers/acquisitions/bankruptcies do not absolve the supplier of responsibility. There are a LOT of relatively small suppliers to the big OEMs, and for a lot of those companies, a big recall would be more financially disadvantageous than a bankruptcy would be. Some OEMs have been burned in the past by small suppliers declaring bankruptcy in response to recalls on their parts, so this is a big part of supplier/OEM contracts.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
So this is a settlement that hurts everyone, and by sharing the pain they can live with it.
This is a company that had a market cap of over $2b a couple of years ago, now with a market value of 1/16th of that.
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P.E. Metallurgy, Plymouth Tube
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
A lot of the recalled cars are 10 - 15 years old or more (and the concern is primarily on "aged" airbags anyhow), and many of those cars are worth scrap value or not much more. For those, the manufacturer's least-cost course of action could very well be to clandestinely buy these cars cheaply whenever they show up used, then either blow up or remove or destroy the defective airbags so that no one else can sell them, then send the car on its way to the scrap heap.
Problem is that this can't be an official publicly-announced policy, because then suddenly that 15 year old car magically becomes worth its weight in gold to anyone who happens to be sitting on one.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
It's not complicated.. Honda and Toyota and GM and Chrysler and whomever else enter into a contract with Takata to buy their airbags
Part of that contract stipulates that Takata will absorb all costs related to any recall of Takata parts (and usually pay a bunch of penalties as well, to the OEM)
Another part of that contract stipulates that the contract can't be terminated in a merger or acquisition, and that the contract will be fixed with an Assignment for Benefit of Creditors, which means any damages Takata owes due to that contract is first in line to be paid out of forfeiture of assets should Takata file for bankruptcy.
No, they won't, at least not in full. Takata is not ceasing to exist as a company, and the plants are not going anywhere.
KSS is basically buying more manufacturing capacity for cents on the dollar. The recall killed Takata's incoming revenue, but their existing contracts and manufacturing capability are worth a lot more than the cost KSS paid to acquire Takata's assets.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
Bankruptcy doesn't necessarily mean forfeiture of assets. It means protection from creditors (obviously an overly brief definition), and it therefore means that contracts are thus not necessarily enforceable.
Claiming that a contract can overrule bankruptcy rules just isn't correct; it's just not possible. It's similar to those putting up "legal notice" signs trying to overrule legislation.
Of course, people can try. But it's silly
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
That restructuring of debt by Takata is a process which they control- bankruptcy laws aren't 'overruled'.
The ABC process in bankruptcy proceedings exists for exactly this purpose- it allows a company to structure which debts are to be paid first from any available assets.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
So it's a completely different thing.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
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RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
In a federal bankruptcy proceeding assets can be assigned by general assignment.. it's an assignment process that effectively the same as an ABC.
Which can be controlled by an existing contract.
I've been through this, not just read about it in the paper.
The OEMs are going to incur some costs certainly, but Takata doesn't get to just wash their hands.
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
My point was that this claim is somewhat meaningless: "...contracts almost always stipulate that ...bankruptcies do not absolve the supplier of responsibility." If this recall costs tens of billions, then you may rest assured that Takata ain't paying that bill. Ain't. Going. To. Happen. Ever. I'm not sure if that's what you were trying to claim, depending on what you meant by "absolve". Bankruptcy rules can erase debts (absolve), no matter what any contract says. The company may not survive the process, but their debt is even more likely to be killed off.
Also, "...damages Takata owes due to that contract is first in line to be paid out of forfeiture of assets..." Actually, the first to be paid is the Trustee, the second are the government(s) with jurisdiction. There may be others with statutory rights, which may vary with jurisdiction. Finally, the vehicle OEMs with their precious contracts might get some crumbs (if there are any left).
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
There is also a court case in FL where a Toyota dealer has sued to prevent other dealers from selling used cars that are under recall without making this know prior to the sale, in other words significantly lowering the value of the cars, and creating a liability situation. The dealer that filled this is sitting on a couple hundred cars as he refuses to re-sell them until they are fixed.
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P.E. Metallurgy, Plymouth Tube
RE: Speaking of "Engineering Failures", Takata has declared bankruptcy...
Time for securefoam?