Air bag inflators News

The bankruptcy of Japanese auto parts giant Takata may frustrate the legal challenges by victims harmed by the company`s exploding airbags, which were part of the largest auto safety recall ever.

Takata Corp will seek bankruptcy protection from creditors on Monday, two sources said, as the Japanese company faces billions of dollars in liabilities stemming from the biggest recall in automotive history.

Takata shares dived again on Tuesday, losing one-third of their value in just two days of trading on reports the troubled airbag maker will file for bankruptcy protection and sell its assets to a US company.

Takata, one of the world`s biggest automotive suppliers, has been working for months to complete a deal with Key Safety.

As some regional Takata recalls are expanded nationally, the number of affected vehicles could grow to 20 million or more.

Takata Corp will "rapidly" reduce production of a volatile chemical that has been linked to ruptured air bag inflators, a company executive told US lawmakers on Tuesday.

Japan`s Takata said it would redesign some driver-side airbag inflators, in the latest chapter of a global auto parts scandal linked to six deaths and the recall of millions of vehicles.

A subcommittee of the House Energy and Commerce Committee has scheduled a hearing on June 2 on the problems that lead to the recall.