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Takata Sells Stock in Carmakers to Raise Cash
Takata Corp. reports it is raising cash by selling at least some of its equity in such customers as Fuji Heavy Industries, Honda, Mitsubishi Motors, Nissan, Suzuki and Toyota.
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Takata Corp. reports it is raising cash by selling at least some of its equity in such customers as Fuji Heavy Industries, Honda, Mitsubishi Motors, Nissan, Suzuki and Toyota. Bloomberg News estimates the value of Takata’s holdings at $88 million (9.3 billion yen).
Takata needs cash as it braces for the financial impact of some 100 million recalls of its airbag inflators. The devices have been blamed for 13 fatalities and more than 130 injuries.
The company could face billions of dollars in charges for the campaigns, which so far have been funded by 17 carmakers that have used the Takata inflators. The company is in negotiations with its customers to determine its share of the costs involved.
Investigators understand what can cause a Takata inflator to misfire: extended exposure to heat and moisture. But they can’t yet predict how long the process takes, making it virtually impossible to determine the proper size of the recalls. Regulators have been pushing carmakers to eventually replace virtually all Takata inflators regardless of climate conditions.
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