Air bag maker Takata files for bankruptcy

UNDATED » Japanese air bag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators that are linked to the death of at least 16 people.

The company announced the expected action Monday morning Tokyo time. Takata confirmed that most of its assets will be bought by rival Key Safety Systems, based in suburban Detroit. Key will pay about $1.6 billion, according to an announcement by the two companies.

Takata’s defective inflators can explode with too much force when they fill up an air bag, spewing out shrapnel. Besides the fatalities, they’re also responsible for at least 180 injuries, and touched off the largest automotive recall in U.S. history. So far 100 million inflators have been recalled worldwide including 69 million in the U.S., affecting 42 million vehicles.