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Takata to Seek New Capital As Recall Costs Rise
Takata Corp. is expected to pursue more capital in September as it braces for sharing costs of multiple recalls to replace roughly 50 million airbag inflators that could explode, according to Kyodo News.
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Takata Corp. is expected to pursue more capital in September as it braces for sharing costs of multiple recalls to replace roughly 50 million airbag inflators that could explode, according to Kyodo News.
A dozen carmakers are recalling the units and have indicated they will discuss Takata’s share of the cost later. Kyodo reported in January that the supplier could face charges of nearly 400 billion yen ($3.5 billion). Takata’s net group assets were worth about 140 billion yen ($1.2 billion) at the time.
It isn’t clear where Takata will get the funding. Honda Motor Co., a minority shareholder and the company’s largest customer, has said it will no longer buy Takata inflators. Other carmakers who have announced they won’t use Takata inflators in new models include Ford, Mazda, Nissan and Toyota.
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