Takata Deepens Loss Estimate as Airbag Crisis Grows

Takata Corp. now expects to lose 25 billion yen ($218 million) in the current fiscal year ending March 31 because of expanding recalls of its faulty airbag inflators.

In August the company predicted a record loss of 24 billion yen ($208 million). Takata booked a 45 billion-yen ($391 million) charge in April-June for the recalls and said it didn't expects costs to rise.

But since then the scope of the recalls, which already cover some 16 million vehicles worldwide, appears likely to grow significantly. The inflators, which may explode when triggered, have been linked to four deaths and 139 injuries in the U.S.

Last month the U.S. National Highway Traffic Safety Administration asked 10 carmakers to replace the Takata inflators in 7.8 million vehicles located in high-humidity regions. The agency has since urged the companies and Takata to accelerate the repairs.

Observers say the agency may insist the recalls be expanded to cover vehicles in all parts of the country. The widening crisis has caused Takata's stock price to plunge 49% so far this year.