June 26th, 2017 News of the Day: Takata Declares Bankruptcy, Berlin Demands Diesel Car Recall

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【Summary】News of the Day for June 26th, 2017.

Original Claire    Jun 26, 2017 12:24 PM PT
June 26th, 2017 News of the Day: Takata Declares Bankruptcy, Berlin Demands Diesel Car Recall

Takata declares bankruptcy and agrees to Key Safety acquisition

the Japanese automotive supplier giant Takata has officially filed for bankruptcy protection in both the U.S. and Japan. This is "the biggest corporate failure in postwar Japanese manufacturing" and will lead to the end of a 48-year-old company.

According to Bloomberg,a major competitor of Takata — Key Safety Systems based in Japan but owned by China's Ningbo Joyson Electronic Corp., will pay reportedly $1.6 billion to buy the bankrupted company. The acquisition will keep most of Takata's employees globally, but will not include any of its liabilities.

Takata is currently said to have a massive $10 billion in debt, not even calculating the cost of recalling its defective airbag, which could be an additional $5 billion. Takata Chairman Shigehisa Takata will step down after handing over the company to the new management.

Lyft adds pickup suggestions for smoother ride


Lyft will offer pickup suggestions in the latest version of the Android and iOS app, making it easier for drivers to pick up riders. The company says the functions only trigger when it will actually save a rider time, and only if they are within a short walking distance. However, a rider can opt to stick with the original pickup spot if they choose.

The pickup suggestions will be available in all Lyft-operating markets. The pickup suggestions explicitly show how much time you'll save by using the feature, and cover walking time, even factoring details such as time lost to crosswalks and traffic lights.

Berlin demands recall of 12 million diesel cars


Germany's Transport Ministry is in talks with car manufacturers about updating the engine software of 12 million diesel vehicles, an insider told Reuters on Monday.

The cost of updating the vehicles could be as much as 1.5 billion to 2.5 billion euros. The ministry demands that cars with engines conforming to the euro-4, euro-5 and euro-6 standards be part of the recall.

Meanwhile, the ministry is in talks with German auto industry associations VDA, VDIK and local government regulators to try to cut nitrogen oxide pollution by about 25%. Several European cities including Stuttgart and Munich have considered banning diesel vehicles as well.

Lamborghini Huracan given UK Taxi License


A luxury Lamborghini Huracan has recently been given a taxi license in the United Kingdom by the City of Lincoln Council for use by Handsome Cabs taxi company.

The Huracan will be available to hire or called upon if any local resident would like to take a flashy lift to their destination.

"Our committee received an unusual application from Handsome Cabs and have granted a license for their Lamborghini Huracan as a specialist private, for restricted use. It is certainly an impressive vehicle and one which will no doubt turn many heads around the streets of Lincoln and beyond." Cath Brothwell, Councillor and chairman of the council's licensing committee told UK media The Sun.

Tesla expands borrowing capacity prior to Model 3 release


Tesla has expanded its borrowing capacity for the second time in six months, as the company spends heavily to bring the Model 3 to market.

The expansion was made with the credit agreement increased by $800 million to $3.825 billion, according to a regulatory filing last Friday. Tesla boosted its credit lines in December and raised money in March before starting production this summer for the more affordable Model 3 sedan.

After heavily spending for the last two quarters, the EV company intends to raise capital expenditures in the three-month period ending in June.

The Model 3 is set to unveil in July, with its first deliveries expected before the end of 2017.

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