Takata, the Japanese automotive supplier at the centre of a global recall of exploding airbags, has filed for bankruptcy protection in Japan and the US, saddled with liabilities exceeding $10bn to address massive recall costs.

The move paves the way for a $1.6bn takeover of Takata’s core assets by Key Safety Systems, a US airbag manufacturer owned by China’s Ningbo Joyson Electronic, bringing to an end the 84-year-old company that developed Japan’s first driver-side airbag system in the 1980s with Honda.

Takata’s bankruptcy filing leaves the global car industry grappling with the implementation and financial costs of completing an unprecedented recall process involving tens of millions of vehicles sold by at least 13 carmakers including Honda, Toyota and Volkswagen.