Filing for bankruptcy protection may not be enough to help troubled Japanese auto-parts maker Takata untangle itself from what is considered one of the biggest recalls in automotive history, analysts told CNBC.
The Japanese airbag manufacturer on Monday filed for bankruptcy protection in Japan and the United States. U.S.-headquartered auto parts supplier Key Safety Systems (KSS) said it reached an agreement with Takata to purchase most of its global assets and operations for $1.588 billion.
Takata's faulty airbags have resulted in at least 17 deaths and more than 180 injuries globally over the years, according to Reuters. This led to global transport authorities ordering about 100 million inflators to be recalled and Reuters said industry sources estimated costs for the recall could climb to about $10 billion. Takata also faces numerous lawsuits in the United States, Canada and other countries, said Reuters.
The problems developed into a scandal after it emerged that Takata allegedly hid the issues for years before recalling the dangerous airbags.
"You're talking about tens of millions of bags and they are still responsible for doing that and carrying out those replacements even in a bankruptcy filing," Karl Brauer, executive publisher of Autotrader and Kelley Blue Book, told CNBC's "The Rundown on Monday, referring to the ongoing recall and replacement process.
Brauer said Takata executives were likely hoping there would be enough money from the sale of its assets to carry out the rest of the recall, but he was skeptical.