Takata Corp. suppliers and employees voiced concern Monday following the embattled Japanese air bag maker’s decision to file for bankruptcy protection amid a global recall of its defective air bag inflators. “We just received delivery orders two days ago, but I’m worried if we…
Takata Corp. suppliers and employees voiced concern Monday following the embattled Japanese air bag maker’s decision to file for bankruptcy protection amid a global recall of its defective air bag inflators.
“We just received delivery orders two days ago, but I’m worried if we will really be paid, ” an employee at a car component company in the city of Takashima in Shiga Prefecture said, adding, “Even if the amount of transactions is small, it will hurt smaller firms like us.” Takata started business as a fabric firm in the prefecture in 1933.
According to credit research agency Tokyo Shoko Research Ltd, around 40% of Takata’s more than 130 tier 1 suppliers are based in the Kinki region, mainly in Shiga, western Japan.
A worker at a factory that makes parts for Takata’s unit Takata Kyushu Corp in Saga Prefecture, southwestern Japan, was also confused about the decision.
