With safety regulators considering whether to order the recall of all Takata airbags using ammonium nitrate, a new report suggests the Japanese supplier could be on the hook for as much as $24 billion in repair costs.
That astronomical bill has investors running for the exits and, some observers warn, could finally break Takata financially.
More than 50 million Takata airbags have already been recalled, the majority of them in the United States, due to a defect that can cause them to explode with too much force when triggered by a crash. At least 10 deaths have so far been linked to the problem. But the number could grow to more than 287 million airbags, according to the Bloomberg news service. (more…)