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Takata Nears Decision on Restructuring as Losses Deepen
Takata Corp. reports a record loss of 79.6 billion yen ($699 million) for the year ended March 31 on rising costs associated with its explosion-prone airbag inflators.
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Takata Corp. reports a record loss of 79.6 billion yen ($699 million) for the year ended March 31 on rising costs associated with its explosion-prone airbag inflators.
The company booked 133 billion yen ($1.2 billion) in special charges last year against its liabilities. Roughly 100 million of the company’s inflators, which have killed at least 16 people and injured more than 100 others, are being recalled by more than a dozen carmakers worldwide.
Takata also warns that its future operations could be negatively affected by an above-average proportion of employees who are quitting their jobs. The company says it aims to quickly finalize a repeatedly delayed bailout plan but offers no new timetable for doing so. An agreement initially had been expected last August.
Takata reportedly hopes to work out a deal with U.S.-based airbag maker Key Safety Systems Inc., which is owned by China’s Ningbo Joyson Electronic Corp. Reports say the bailout would enable the company to maintain production and give it 200 billion yen ($1.8 billion) in new funding, most of which would go to help pay for recall costs currently being borne by its carmaker customers.
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