Mexican Media Brands
Takata’s Quarterly Profit Surges as Airbag Recalls Rise
Takata Corp. reports its net income in October-December 2015 jumped to 8.1 billion yen ($69 million) from 2.8 billion yen a year earlier.
#economics
Share
Takata Corp. reports its net income in October-December 2015 jumped to 8.1 billion yen ($69 million) from 2.8 billion yen a year earlier. Revenue grew 10% to 184 billion yen ($1.6 billion).
The company, whose flawed airbag inflators are being replaced in roughly 40 million vehicles worldwide, says it spent about 11 million yen ($90 million) on recall-related expenses in April-December. The 12 carmakers conducting the recalls—many of whom have declared they will no longer use Takata inflators—have booked several times that amount.
Last November the U.S. National Highway Traffic Safety Administration fined Takata a record $200 million for misleading regulators and customers about defects that could cause the company’s inflators to explode. The defect has been blamed for 10 fatalities and more than 130 injuries.
Takata is preparing a plan to restructure itself in the wake of a scathing independent report on its lack of rigorous quality monitoring and control procedures. The company hopes to reach agreement with its customers by the end of May about sharing the cost of repairs, according to Bloomberg News.
RELATED CONTENT
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
Study: Border Tax, NAFTA Exit Would Hurt U.S.
The U.S. auto industry would lose at least 31,000 manufacturing jobs and 450,000 units of annual sales if the U.S. imposes 35% tariffs on cars from Mexico, as President-elect Donald Trump has vowed to do.