Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  SHANGHAI STOCK EXCHANGE  >  Ningbo Joyson Electronic Corp    600699   CNE000000DJ1

NINGBO JOYSON ELECTRONIC CORP (600699)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Automakers to provide up to $130 million for Takata's U.S. settlement

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/14/2018 | 01:32am CEST
FILE PHOTO: Logo of Takata Corp is seen on its display at a showroom for vehicles in Tokyo

WILMINGTON, Del. (Reuters) - A group of 13 automakers will contribute as much as $130 million (93.69 million pounds) to compensate those injured by faulty Takata Corp air bag inflators as part of a deal to resolve the Japanese company's bankruptcy, a U.S. plaintiffs' attorney told Reuters.

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 (>> Ningbo Joyson Electronic 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.

In an interview late on Monday, Rice said the group of 13 automakers would contribute about $80 million to $130 million to Takata's bankruptcy estate to help compensate those injured by the Takata inflators.

In return for the automakers' contribution, a committee of injured drivers dropped their objection to TK Holdings' proposed bankruptcy exit plan. The plan will be presented to a U.S. judge on Friday for approval.

Victims of the faulty inflators will also be able to collect from a separate $125 million compensation fund created as part of a plea deal Takata entered with the U.S. Department of Justice early last year. As part of that plea, automakers will receive their share of an $850 million restitution fund.

Rice said funds from the Justice Department settlement and the bankruptcy are likely to fall short of full compensation for injured drivers, but they will still be able to sue the car manufacturers.

The one exception is Honda Motor Co (>> Honda Motor Co Ltd), which agreed to create a trust to ensure injuries linked to its vehicles will be compensated in full, according to Rice. He said Honda also will not contest fault for the injuries.

At least 22 deaths and hundreds of injuries worldwide are linked to the Takata inflators.

Honda has faced the greatest number of air bag-related claims of the automakers, and 20 of the deaths have occurred in Honda vehicles, most of which were in the United States. In return for funding the trust, Honda will be shielded from further lawsuits. That also means it will not face the risk of punitive damages.

Last year, plaintiffs said an internal Honda email showed Honda was long aware of the risks of Takata air bags, the type of allegation that could have opened the way to punitive damages.

Honda has said it was a victim of deception by Takata, and noted in a statement Tuesday that the $850 million fund created as part of the plea deal was meant to compensate automakers for Takata's scheme.

Honda said it is committed to swiftly and fully compensating those injured caused by defective inflators in its vehicles, according to the statement, and said claimants could still opt into the court system.

The 12 other carmakers that were involved in the settlement, including Ford Motor Co (>> Ford Motor Company), Toyota Motor Co (>> Toyota Motor Corp), General Motors Co (>> General Motors Corporation) and Volkswagen AG (>> Volkswagen), have 18 months to opt into the trust, if they agree to compensate drivers in full.

Until then, they will continue to defend personal injury and wrongful death lawsuits. They will be able to offset any judgments with payments made to claimants from the Justice Department fund and the bankruptcy.

The automakers trust being funded by Honda is similar to arrangements used by manufacturers driven into bankruptcy over asbestos-tainted products. While the asbestos trusts have often been underfunded, the automakers trust will be a pay-as-you-go system, helping to ensure it remains solvent.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder, Tom Brown and Diane Craft)

By Tom Hals

Stocks mentioned in the article
ChangeLast1st jan.
FORD MOTOR COMPANY -0.95% 11.51 Delayed Quote.-6.97%
GENERAL MOTORS CORPORATION -0.23% 38.3 Delayed Quote.-6.34%
HONDA MOTOR CO LTD -0.93% 3498 End-of-day quote.-10.88%
TOYOTA MOTOR CORP -1.29% 7115 End-of-day quote.-2.53%
VOLKSWAGEN 1.64% 170.14 Delayed Quote.2.22%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NINGBO JOYSON ELECTRONIC C
04/12NINGBO JOYSON ELECTRONIC : Key Safety Systems completes deal to acquire air-bag ..
RE
03/20Senators to press automakers, regulators on Takata air bag recall
RE
03/13Honda, Ford to testify at U.S. Senate Takata hearing - aides
RE
03/13HONDA, FORD TO TESTIFY AT U.S. SENAT : aides
RE
02/17NINGBO JOYSON ELECTRONIC : Judge approves Takata's U.S. bankruptcy plan
RE
02/16NINGBO JOYSON ELECTRONIC : Takata has resolved most objections to its U.S. bankr..
RE
02/14Automakers to provide up to $130 million for Takata's U.S. settlement
RE
01/29Ford China chief in abrupt departure, a blow to recovery hopes
RE
01/12Ford urges 2,900 pickup owners to stop driving after new Takata death
RE
01/04NINGBO JOYSON ELECTRONIC : U.S. judge clears Takata to seek creditor vote on ban..
RE
More news
Financials ( CNY)
Sales 2018 42 332 M
EBIT 2018 2 534 M
Net income 2018 1 072 M
Debt 2018 6 745 M
Yield 2018 1,05%
P/E ratio 2018 22,98
P/E ratio 2019 18,48
EV / Sales 2018 0,76x
EV / Sales 2019 0,67x
Capitalization 25 574 M
Chart NINGBO JOYSON ELECTRONIC C
Duration : Period :
Ningbo Joyson Electronic C Technical Analysis Chart | 600699 | CNE000000DJ1 | 4-Traders
Technical analysis trends NINGBO JOYSON ELECTRONIC C
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 37,0  CNY
Spread / Average Target 37%
EPS Revisions
Managers
NameTitle
Jian Feng Wang Chairman & President
Zhi Ming Guo Chairman-Supervisory Board
Jun Yu Li Chief Financial Officer
Jin Hong Fan Vice Chairman
Kai Yu Secretary & Director
Sector and Competitors
1st jan.Capitalization (M$)
NINGBO JOYSON ELECTRONIC CORP-18.04%4 002
CONTINENTAL-0.47%52 194
DENSO CORP-20.25%39 790
APTIV15.11%25 855
MAGNA INTERNATIONAL INC.16.82%22 987
HYUNDAI MOBIS CO., LTD.--.--%21 206