Mexican Media Brands
Takata Hires Lazard as Financial Advisor
Takata Corp. says it has contracted Lazard Freres & Co. LLC to look for investors and guide the company's financial restructuring.
#economics
Share
Takata Corp. says it has contracted Lazard Freres & Co. LLC to look for investors and guide the company's financial restructuring.
Takata's board set up an independent committee in February to create a restructuring plan. Sources tell Reuters the company also expects by August to have a list of possible financial backers for Lazard to pursue.
The supplier faces billions of dollars in regulatory fines and legal settlements linked to the global recall of roughly 100 million of its airbag inflators by 17 carmakers. Reuters estimates the cost of replacing the inflators alone will be at $9 billion.
Takata’s own financial exposure will hinge heavily upon its proportion of responsibility for the crisis. To date, carmakers have paid for virtually all costs related to recalling and replacing Takata inflators that could explode when triggered. But Takata’s own investigation into the cause turned up multiple contributing factors, including major lapses in the company’s own manufacturing procedures and quality control methods.
Last November Takata agreed to pay a $70 million fine by the U.S National Highway Traffic Safety Administration and could face an additional $130 million for misleading the agency and the company’s carmaker customers about flaws in the inflators.
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.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.