Takata sells auto interiors unit as airbag recall costs inflate

DETROIT — Troubled airbag maker Takata Corp. of Japan is selling its automotive interior trim and seating material operation, raising cash as its inflator recall costs continue to mount.

The Japanese company is selling Pontiac, Mich.-based Irvin Automotive Products to Piston Group, an auto parts supplier run by former Detroit Pistons guard Vinnie Johnson. The sale price wasn’t disclosed, but Piston Group, based in suburban Detroit, said in a statement Wednesday that Irvin has annual sales of $500 million.

Takata faces billions in costs for what is now the largest auto recall in U.S. history. Its inflators can explode with too much force, spewing shrapnel. They’ve been linked to at least 15 deaths and more than 100 injuries worldwide. The company is recalling 69 million inflators in the U.S. and around 100 million across the globe.

“For Takata, this transaction gives us additional financial flexibility and enables us to focus on our safety operations, with a particular focus on managing the complex, global airbag recalls alongside our automotive customers and regulators,” Takata CEO Shigehisa Takada said in a statement.

Honda, Toyota and Fiat Chrysler are among the biggest customers for Takata inflators. In all, 17 automakers are affected by the recalls. Many automakers have said they will stop using Takata airbag inflators in models under development, and they will be billing Takata for the recall costs.

Analysts expect Takata to go through a bankruptcy restructuring to shed some recall costs, with investors taking control of the company and changing its management.