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Takata Wants to Pay Recall Costs in Installments
Takata Corp. has asked carmakers to allow the company to pay over time for recalls related to its flawed airbag inflators, a source tells Bloomberg News.
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Takata Corp. has asked carmakers to allow the company to pay over time for recalls related to its flawed airbag inflators, a source tells Bloomberg News.
Takata's chief financial office told analysts on Thursday that the group is close to agreement on terms for the installment payment plan, according to the analyst. The source adds that Takata has been meeting with its bankers almost continuously to ensure it has sufficient cash flow. An installment program would enable the company to avoid running out of cash.
Takata said in February it had set aside some 5 billion yen ($429 million) to cover recall costs to date. But this week Japanese carmakers announced plans to recall an additional 14 million vehicles to replace the driver's and in some cases front passenger's frontal airbag inflators.
Carmakers have now recalled at least 28 million vehicles worldwide because their Takata airbag inflators might explode when activated.
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