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Takata's autoparts operations will live on under a subsidiary of the company's turnaround sponsor.   © Reuters
Business

Takata: A textbook example of crisis mis-management

Why Toyota and Samsung succeeded where the scandal hit air bag maker failed

TAKESHI SHIRAISHI, Nikkei staff writer | China

TOKYO -- How does a company go from a global leader in its industry to filing for bankruptcy in a matter of years? Just ask Takata. The Japanese autoparts supplier controlled 20% of the air bag market until a protracted recall ballooned into an uncontrollable crisis. Now it is seeking bankruptcy protection in Japan and the U.S., its debts having mounted to 141.2 billion yen ($1.26 billion).

Nearly 100 million cars equipped with Takata air bags were recalled globally due to a defect with the ammonium nitrate propellant used to inflate them, which can violently explode during deployment due to degradation after prolonged exposure to high temperature and humidity.

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