Takata Corp., Japanese manufacturer seeks buyers for its Irvin Automotive Products unit. They want to assume the responsabilities of those 10 deaths and more than 100 injuries, and to shore up the company’s balance. They plan to sell their automotive interiors division to raise money for paying for the cost of recalling about 50 million vehicles due to exploding air bags.
Takata is working with Japanese bank SMBC Nikko Securities Inc. and U.S. bank Moelis & Co. on the potential sale. It isn’t clear whether Takata is seeking strategic or financial buyers for the business, or how much money the company hopes the business will fetch.
Irvin employs roughly 7,100 people and takes in about $500 million of annual revenue. The company has grown sales significantly over the past several years and has factories running at full capacity producing parts.
If an investigation finds Takata responsible for the ruptures' root cause, then the business would need to shoulder more of the costs, which could mean billions of dollars in expenses. The US government believes the company's use of ammonium nitrate propellant is a factor in the explosions, but there's no conclusive proof the chemical is the primary reason for them.
