Takata: We Can Fund Airbag Recalls

Takata Corp. tells The Nikkei it has enough funding to cover the cost of expanding global recalls to replace defective airbag inflators that can explode when triggered.

Takata reportedly has allocated $774 million to pay for the cost of the recalls. But in the U.S. the company also faces a criminal investigation and a flurry of lawsuits. Takata's stock price has plunged about 50% since October.

CEO Shigehisa Takada, who hasn't been seen in public since June, tells The Nikkei the company has remedied manufacturing issues related to the problem. But skeptical carmakers have launched their own investigation into the cause of the misfires, which have been linked to five fatalities worldwide.

At least 10 carmakers have so far recalled more than 13 million vehicles to replace driver- and/or passenger-side inflators. In the U.S., the National Highway Traffic Safety Administration is pushing manufacturers to broaden existing recalls, which have been limited to high-humidity regions.