A group of 13 automakers will contribute as much as $130 million to compensate those injured by faulty Takata Corp air bag inflators as part of a deal to resolve the Japanese company’s bankruptcy, Reuters reported. The agreement clears the way for the sale of Takata’s non-inflator business to Key Safety Systems, a unit of China’s Ningo Joyson Electric Corp, for $1.6 billion, helping to ensure a steady supply of car parts for the world’s biggest automakers. Takata and its U.S. unit, TK Holdings Inc., filed for bankruptcy last year in the wake of the world’s largest automotive safety recall, triggered by air bag inflators that can explode with excessive force, unleashing metal shrapnel inside cars and trucks. Attorney Joe Rice of Motley Rice, who represents dozens of personal injury plaintiffs in the bankruptcy, said the deal, which was disclosed in court papers on Saturday, was aimed at keeping Takata operations afloat so it could make replacement inflator kits. Tens of millions of air bags with the inflators have been recalled but not yet replaced.
