Takata Declares Latest Recall Investigative And May Not Pay Costs

Japan's Takata Corp. declared nearly 14 million airbag inflators defective as part of an expanded U.S. recall, but it said it considered the recall investigative, leaving the thorny question of cost-sharing with automakers unresolved.

The question of just how much Takata will have to pay for a deepening crisis over potentially deadly airbags has been hanging heavily over the company, with management saying that can be worked out only when there is clarity on the root cause of the problem.

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TomM - 5/17/2016 3:48:49 PM

+3 Boost

Takata is already teetering on Bankruptcy - actually informing their creditors of day to day cash flow. Adding another round of re-calls is going to put them under - maybe completely - Unless they sell off or spin off the rest of the company not involved in air bags.

And that means that the companies who bought from them will have to take a big hit - since they are responsible for fixing the problems - and that could put some more Auto companies on poor footing. And we still don't know two things - what actually causes the problem - and will it happen to other designs in the future. IT appears that moisture is causing some of the problems - and may be a problem for other types of non-takata airbags as well.