Bankrupt Takata air bags still out there

Japanese air bag maker Takata Corp. CEO Shigehisa Takada bows at the beginning of a press conference in Tokyo, Monday, June 26, 2017.  Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators. (Akiko Matsushita/Kyodo News via AP)
Japanese air bag maker Takata Corp. CEO Shigehisa Takada bows at the beginning of a press conference in Tokyo, Monday, June 26, 2017. Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators. (Akiko Matsushita/Kyodo News via AP)

Takata's lethally defective air bags proved to be the company's undoing Monday. But it could take years to get the dangerous devices off the road in the U.S. and around the world.

Crushed by lawsuits, fines and recall costs, the Japanese auto parts supplier filed for bankruptcy in Tokyo and Delaware and will sell most of its assets for $1.6 billion to a rival company. A small part of Takata will continue to manufacture replacements for the faulty air bag inflators.

The problem, though, is that 100 million of the Takata inflators worldwide have been recalled, 69 million in the U.S. alone in the biggest automotive recall in American history. It will take the industry years to produce that many replacements.

In the meantime, millions of car owners are forced to nervously wait for someone to fix a problem blamed for at least 16 grisly deaths worldwide, 11 of them in the United States. Many owners have been put on waiting lists by their dealers until the parts arrive.

"The big problem is the air bags are still out there. They're like bombs waiting to explode," Billie-Marie Morrison, the lawyer for a young Las Vegas woman grievously injured by an exploding air bag in March.

In fact, the last batch of U.S. repairs is not scheduled to begin until September 2020, according to the National Highway Traffic Safety Administration, which is overseeing the recall.

In the U.S., more than 16 million inflators have been repaired so far, or 38 percent of the total. In Japan, 70 percent have been replaced, according to Takata. That's partly because Japan won't renew vehicle registrations unless recalls have been completed.

Because of the type of chemical propellant used by Takata, the defective air bags can inflate with too much force and spew deadly shrapnel at drivers and passengers. Takata sold the inflators to 19 automakers, including Toyota, Subaru, BMW, Honda, Ford and Nissan.

Takata's bankruptcy filing clears the way for most of its assets to be taken over by Key Safety Systems, a Chinese-owned company based in suburban Detroit.

Takata President Shigehisa Takada said with the company rapidly losing value, fiing for bankruptcy was the only way it could carry on.

"We're in a very difficult situation, and we had to find ways to keep supplying our products," Takada said.

Victims and their families fear the bankruptcy filing could leave little money left over to compensate them. Earlier this year, Takata pleaded guilty to federal fraud charges and agreed to pay $1 billion for concealing the defect for years. The penalties include $850 million in restitution to automakers, $125 million for victims and families and a $25 million criminal fine.