Investor confidence in Takata continues to drop

Article by Christian Andrei, on December 4, 2014

Investors are not too optimistic of the future of airbag supplier Takata Corp., even as the Japanese company is adamant of its financial strength. In fact, short-seller bets on a drop in Takata’s share price peaked on Nov. 19, 2014, and still lingers near that level, after the National Highway Traffic Safety Administration threatens to impose fines against the Japanese group unless the supplier expand regional recalls into a national one.

Investors are wagering Takata share would further drop after diving over 50 percent this year. Takata had remarked that it would be difficult to estimate its liabilities as it continues to face a surge of lawsuits, a federal grand jury subpoena in the United States and heighten oversight by regulators in Japan.

Koji Endo, an analyst at Advanced Research Japan, told Automotive News via phone that serious long-term investors “do not want to have anything to do” with Takata shares at this point. He disclosed a number of investors he has met weeks prior believe that the Japanese supplier might need some financial aid.

He added the even if Takata doesn’t fall into bankruptcy, it would still be in trouble from a financial aspect. NHTSA is probing Takata’s airbags after they were linked to at least four deaths in the US and another one in Malaysia. The death in Malaysia – involving a pregnant woman – could mean the airbag crisis could beyond US borders.

Japan has created a group that would monitor recalls and coordinate with NHTSA. Managing Director Akira Warita of Matsui Securities Co. said in e-mail to Automotive News that there have been significant hikes in both short and long positions in Takata shares since Sept. 30, adding that many investors believe that the company is “cheap” and its stock price will recover.

Topics: takata, airbag, recall

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
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