Takata Airbag Recall Will Cost Them $24 Billion

Posted: Mar 30 2016, 2:06pm CDT | by , in News | Cars & Vehicles

 
Takata Airbag Recall Will Cost Them $24 Billion
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  • Takata estimate a complete recall will cost them $24 billion!

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The call-back of all of their defective inflators will be equal to over 2.7 trillion yen.

A source claims overall recall by Takata is estimated to cost them about 2.7 trillion yen ($24 billion). The recall will be the auto industry’s biggest recall ever and the comprehensive callback of its airbag inflators would cost Takata billions.

For Takata the worst-case recall scenario would involve 287.5 million airbag inflators, according to Bloomberg. However Takata and the automakers still have to determine how the costs are shared. Takata representatives have declined to comment on the development.

Meanwhile the shares of Takata Corp. have fallen to an all-time record low. The shares fell about 20 percent to 414 yen. They hit a lower daily limit in Tokyo trading and cutting the company’s market value to $307 million.

On the other hand Honda Motors the biggest customer and Takata shareholder fell 3.6 percent in stocks. Nissan Motor also declined 3.7 percent and Toyota Motor dropped 2.5 percent in the same way.

The figures have shown the situation is far worse than previously expected. Takata may never be able to recover from such a fall. Even if Takata is liable for only half of the $24 billion cost they will be beyond their scope.

It all started when it was found the Takata airbag inflators were behind nine fatalities in the U.S. According to the National Highway Traffic Safety Administration the Takata air-bag ruptured and sprayed metal shards at motorists.

The NHTSA is giving Takata as long as the ends of 2019 to determine the root cause of the flaw or prove the inflators are safe.

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