Takata Corp‘s interiors subsidiary, Irvin Automotive, will be purchased by the Piston Group, a Detroit auto parts maker that is headed by previous National Basketball Association player Vinnie Johnson, a source knowledgeable about the matter informed on Tuesday. The deal is expected to close later on this week, the source stated, at an undisclosed cost. The Takata handle Piston Group is not straight related to the bigger effort to secure a lifeline for Takata and its main seat belt and air bag businesses.
The plan to offer beleaguered Takata to a rescuer, slated by year-end, is likely to extend into next year as some bidders wish to drag the air bag maker through bankruptcy to eliminate the majority of its debt.
Takata’s air bag inflators, which consist of ammonium nitrate, have been linked to a minimum of 14 deaths and over 150 injuries and led to the biggest car recall in history.
Irvin Automotive, located in rural Detroit and with factory in Mexico, makes pieces for car interiors such as seat trim, visors and arm rests. The Piston Group had earnings of $1.3 billion in 2015. Its biggest service is Piston Automotive, which has 700 employees and plants in Michigan, Missouri, Ohio and Kentucky.
Irvin has 7,000 workers, mainly in Mexico. Takata put its Irvin service up for sale 7 months ago.
The upcoming sale was reported on Monday by Crain’s Detroit Business.
