Takata Buries Head In Sand Claiming Recalls Are Almost Over - We Think Otherwise

Takata Corp. raised provisions for its airbag recalls that involve more than a dozen auto manufacturers, after denying reports that the biggest safety crisis in the industry’s history will expand further.

The auto parts supplier will book a combined 20.1 billion yen ($189 million) in charges, 16.6 billion of which was decided after reviewing airbag recall costs, according to a statement today. The remaining 3.5 billion yen is related to settlements with consumers injured by the devices.

Takata shares plunged by the most in a month, after the Nikkei newspaper reported that U.S. regulators plan to call for expanded recalls. The shares fell 9.2 percent to 373 yen at the close in Tokyo, dropping its market capitalization to about 31 billion yen.

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TheSteve - 5/2/2016 11:07:28 AM

+2 Boost

Kinda like VW's PR statements "we're fully co-operating with authorities and we believe we're close to a solution" while the authorities were saying "VW is nowhere close to reaching a settlement"?

I'm much more interested in what the authorities are saying than what Takata is saying. Last I heard, Takata was having daily phone calls with their banks to prove solvency. They were that close to bankruptcy.

Agent009 - 5/2/2016 2:34:50 PM

+2 Boost

Yes IMHO they are ready to collapse. There are 85 million unrecalled Takata airbags out there based on the same defective design. Why should they be immune from the same problems? It is more of a matter when than "if"

MDarringer - 5/2/2016 6:53:18 PM

+1 Boost

Takata's woes are far from over.