Airbag recalls prompts Takata to book $440 million special loss in quarter ended June

Article by Christian A., on July 22, 2014

Takata Corp. will book JPY45 billion ($440 million) in extraordinary loss in the quarter ended June 2014 following recalls issued by a number of carmakers over potential issues with its airbags. Honda Motor Co., Toyota Motor Corp., BMW AG and a number of carmakers have issued recalls of millions of vehicles to fix Takata airbags that may explode and shoot out shrapnel.

The vehicles were mostly located in places where there is high humidity. The cost of the recalls is expected to hike once the National Highway Traffic and Safety Adminstration discovers proof that driving in high humidity could hike the risk of the airbags exploding, or once carmakers move to expand the recalls beyond certain states in the US.

According to Takata, it is still reviewing the possible effect of the special loss on its full-year financial forecast. Takata is expecting to log JPY16 billion in net profit for the year ending March 2015.

In the year ended March 2013, Takata took a $300-million charge and logged a JPY21.1 billion in net losses after carmakers issued recalls of around 4 million vehicles globally over passenger-side airbags.

For the past five years, over 12 million vehicles have been called back by several carmakers due to potential issue with Takata air bags.

Topics: takata, airbag, recall

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries