Detroit Bureau on Twitter

Posts Tagged ‘Takata losing money’

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…)