Takata has enough money to handle airbag recall, says CEO

Article by Christian A., on December 19, 2014

Takata Corp. has enough funds to handle a global recall of possibly defective airbags involving over 21 million vehicles, chief executive Shigehisa Takada told Nikkei. Takada remarked to the Japanese newspaper that the company is not worries that it would be undercapitalized, adding that Takata may take financing steps if needed.

Takata has so far allocated $774 million (£496 million) to deal with recalls, is facing a number of class-action lawsuits as well as a criminal investigation in the United States. The interview with Nikkei comes as Takada still has to make a public appearance over the issue. He told the daily that he has no intentions to avoid the public and is just busy directing Takata’s response to the airbag crisis.

Takada said the supplier is currently making the production of replacement airbags as a priority. So far, the faulty airbags are linked to five deaths -- four in the United States and one in Malaysia – involving Honda cars fitted with the safety device.

He said that Takata is analyzing collected inflators to find the root cause of defects in its airbags, which have the potential to explode and send shrapnel flying. He remarked that the company has identified and corrected manufacturing issues, like mismanagement of ammonium nitrate has been used as an ingredient in the inflators since 2000.

Takada remarked that the supplier was analyzing around 100 inflators a day to determine the cause of the defect. Despite a move to ramp up output of replacement inflators at its Mexican site, there have been worries that there won’t be enough replacement parts for the recall.

If you liked the article, share on:

Topics: takata, airbag, recall

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019