Detroit Bureau on Twitter

Posts Tagged ‘NHTSA pressures Takata’

Takata Recall-Related Losses Mounting

Supplier taking $700 million in charges to deal with problem.

by on Nov.07, 2014

Takata's bottom line is taking the hit due to its faulty airbags and subsequent recall.

One of the outstanding questions in the ongoing Takata airbag saga – how much will it cost the company – is getting an answer, but even that response is changing for the worse for the supplier because those losses are mounting.

The company announced a loss of 35 billion yen, or $306 million, during the quarter that ended Sept. 30. Takata executives further explained the company will lose 25 billion yen for the year, which ends March 2015, which equates to $218 million.

The Last Word!

Takata, which has apologized for the problems, earlier recorded a special loss of 45 billion yen, or nearly $400 million, in its first quarter to handle the costs associated with the problem. In short, it’s taken about $700 million losses due to the problem. More importantly, it’s not likely to be the end of such charges. (more…)

Takata Slapped with Second Class Action Suit

Latest filing in California also names Honda as defendant.

by on Oct.31, 2014

Takata's been hit with a second class action lawsuit and a fourth overall. The latest suit was filed in California.

Even before the dust has settled on the first class action suit against airbag maker Takata, the Japanese supplier has been slapped with a second class action suit. The suit was filed in California.

Hagens Berman, a national class-action law firm, filed suit against Takata as well as Honda Motor Co. alleging the two companies were more interested in their bottom lines than the safety of consumers.

The Automotive Journal of Record!

The complaint, filed in the U.S. District Court for the Central District of California, claims that Takata may have cut corners to build cheaper airbags, and that Honda may have bought its airbags from Takata to reduce manufacturing costs. The result, according to the complaint, is that instead of saving lives, defective Takata airbags in Honda automobiles are killing and maiming drivers and passengers involved in otherwise minor and survivable accidents. (more…)