Mexican Media Brands
Report: Takata’s Airbag Recall Costs Could Reach $24 Billion
Takata Corp. estimates the widening scope of recalls involving its defective airbag inflators could reach 2.7 trillion yen ($24 billion), a source tells Bloomberg News.
#economics
Share
Takata Corp. estimates the widening scope of recalls involving its defective airbag inflators could reach 2.7 trillion yen ($24 billion), a source tells Bloomberg News.
The source says Takata figures a worst-case scenario would involve the recall of almost 288 million inflators. Roughly 50 million of the devices have been recalled so far by a dozen carmakers.
The recalls cover several types of Takata inflators. But all are powered by ammonium nitrate, a propellant that appears to deteriorate when exposed to moisture and then explode when triggered in a crash.
Bloomberg notes that Takata’s shares plummeted 20% to 414 yen ($3.68) today, shrinking the company’s market value to about 35 billion yen ($307 million). The company’s net assets were worth about 140 billion yen ($1.2 billion) at the end of last year.
Takata has been in talks with its customers about sharing the recall costs. The company also reportedly will seek a capital infusion by September.
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.