Takata preparing Chapter 11 filing for US unit in wake of air bag recalls: Report

A deployed airbag is seen in a 2001 Honda Accord at the LKQ Pick Your Part salvage yard on May 22, 2015 in Medley, Florida. The largest automotive recall in history centers around the defective Takata Corp. air bags that are found in millions of vehicles that are manufactured by BMW, Chrysler, Daimler Trucks, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota. (
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Takata is arranging for a potential Chapter 11 filing for its U.S. unit because of huge costs from the company's widespread air bag recalls, according to Dow Jones, citing Japanese financial news service Nikkei.

The report said the move for TK Holdings could help the Japanese air bag maker find a financial backer for its parts-supply operation. If possible, the Tokyo-based company could keep TK Holdings' operations afloat as its seeks to turn things around.

Takata, which has supplied air bags to Honda, Toyota and other big name automakers, faces recall costs more than 1 trillion yen ($9.7 billion) that includes 69 million air bags on recall in the U.S. alone, according to Dow Jones.

Over a dozen automakers are recalling vehicles equipped with the air bags, which authorities have said have the potential to rupture and spray shrapnel. U.S. safety regulators have linked 11 deaths to Takata air bags. The National Highway Traffic Safety Administration has called it largest and most complex safety recall in history.

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