Takata shares fall after US senators called for a criminal probe

Article by Andrew Christian, on November 12, 2014

The current airbag recall scandal surrounding Takata Corp. is taking a heavy toll on the supplier’s shares. In fact, Takata’s shares dropped 17 percent at close of trading on Monday to JPY1,177 in Tokyo Trading just after lawmakers in the United States called for a criminal probe against the company.

As of November 10, 2014, Takata’s shares have dipped 61 percent for the year. US senators recalled called for the Department of Justice to launch a criminal investigation following a report saying that Takata secretly tested its airbags in 2004, and then deleted test data and disposed of failed parts despite finding flaws and beginning work on a recall.

The report was published in The New York Times, citing interviews with two former Takata employees. Sens. Richard Blumenthal (D-Connecticut) and Edward Markey (D-Massachusetts) said in a statement that if the reports are true, Takata should be held accountable for the deaths and injuries caused by its wrongdoing.

The senators said that the allegations against Takata are “credible and shocking” that warrant “a prompt and aggressive criminal probe.” The company disputed the report, saying that the allegations of the former employees were fundamentally inaccurate. Takata also noted that Al Bernat is still with the company.

The report said that Bernat was the former Takata executive who supervised the airbag tests in 2004.

Takata said in an e-mailed statement to Bloomberg that it is cooperating with the government investigation under way. The US National Highway Traffic Safety Administration has given the company until Dec. 1 to answer questions under oath and submit documents that details its handling of the airbag issues since 2000. The faulty airbags have been tied to four deaths and the recall of 7.8 million vehicles in the US.

Topics: takata, airbag, recall

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016
Have you ever heard of the name Kris Singh? If you’re passionate about cars, you’ve probably come across this name at some point while you scour reports about the latest...
by - September 2, 2016