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Takata Ponders Massive Overhaul as Losses Grow
Takata Corp. says it has appointed a five-member team to develop a restructuring plan by August to sell non-core businesses and drastically overhaul its troubled airbag operations.
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Takata Corp. says it has appointed a five-member team to develop a restructuring plan by August to sell non-core businesses and drastically overhaul its troubled airbag operations.
But in a note to shareholders, the company shrugs off speculation that it faces financial collapse because of mounting costs associated with its airbag inflators. More than a dozen vehicle manufacturers are recalling roughly 100 million of the devices, which may explode when triggered.
The overall cost of the recalls, most of which are being borne directly by carmakers, could reach tens of billions of dollars, according to some estimates. Takata is looking for financial backers to help it through the crisis.
Separately, the company confirms it suffered a net loss of 13.1 billion yen ($121 million) for the fiscal year ended March 31. Still, the red ink is an improvement over Takata’s record loss of 30 billion yen in the prior fiscal year.
Takata predicts it will generate a net profit of 13 billion yen in the 12-month period that began April 1.
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