Takata sells auto interiors unit as recall costs rise

By The Canadian Press
September 28, 2016 - 7:00am

DETROIT — Troubled air bag maker Takata Corp. of Japan is selling its automotive interior trim and seating material operation, presumably to raise money to fund costly inflator recalls.

The Japanese company is selling Pontiac, Michigan-based Irvin Automotive Products to Piston Group, an auto parts supplier run by former Detroit Pistons guard Vinnie Johnson. The sale price wasn't disclosed.

Takata faces billions in costs for what is now the largest auto recall in U.S. history. Its inflators can explode with too much force, spewing shrapnel. They've been linked to at least 15 deaths worldwide. The company is recalling 69 million inflators in the U.S. and around 100 million across the globe.

So far, automakers have shouldered much of the recall costs but will seek to pass them to Takata.

The Associated Press

Yellen says economy likely ready for rate hike later in 2016