December 4th, 2007

Three major car makers have lodged a complaint against the manufacturing company that supplied them with brake pads. The concern is that if the manufacturer declares bankruptcy, the carmakers will be responsible for asbestos payouts on their own.

Three major American carmakers are contesting a plan by one of their brake pad distributors to move funds into a trust that is involved in a bankruptcy. The brake pad company was bought by a parent company that is declaring bankruptcy, which allows the manufacturer to move assets into a protected account during the Chapter 11. This would keep the manufacturer from having to contribute to compensation to asbestos victims that are suing the four companies, making the carmakers responsible for the full payouts.

Brake pads have long been known to contain deadly asbestos, which can cause many types of respiratory illnesses. The lawsuits are against the car companies, as well as the manufacturers of the brake pads themselves. When brake pads are used, a fine dust is created which contains asbestos. Breathing in asbestos dust can lead to asbestosis, emphysema and a deadly form of lung cancer called mesothelioma. Mesothelioma occurs when asbestos fibers are caught in the lungs keeping the tissue from absorbing oxygen and slowly suffocating the victim.