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Posts Tagged ‘Takata news’

GM’s Tab for Takata May be $870 Million

Company doesn't believe it will have to make Takata-related repairs.

by on Jul.22, 2016

General Motors faces an $870 million liability related to Takata airbags in 6.8 million vehicles.

General Motors Co. faces potential liabilities of $870 million if it has to replace 6.8 million Takata airbags in cars, full-size trucks and sport-utility vehicles, according to documents filed by the company with the U.S. Securities and Exchange Commission.

The company doesn’t believe there is a safety defect at this time in any of its vehicles related to the airbags it has filed reports with the National Highway Traffic Safety Administration, covering 2.5 million full-size pick-up trucks and sport utility vehicles.

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“As a result of discussions with NHTSA and as described in the Preliminary DIR, GM will have an opportunity to prove to NHTSA that the inflators in these vehicles do not pose an unreasonable risk to safety,” the company noted in the filing. (more…)

Daimler Predicts Quarterly Profits Despite Takata Mess

Mercedes cars expecting small loss.

by on Jul.12, 2016

Daimler will be profitable for the second quarter, although its Mercedes-Benz car division will post a slight loss.

Like other automakers, Daimler AG will release the company’s second-quarter financial report later this month, but it also disclosed it expects earnings for the April-to-June quarter to beat expectations despite the recall of thousands of vehicles equipped with Takata airbags.

“Daimler AG has achieved a Group EBIT adjusted for special reporting items for the second quarter that is significantly above market expectations. Group EBIT adjusted for special reporting items sums up to” 3.97 billion euros, or $4.41 billion, compared with 3.76 billion, or $4.17 billion, for the second quarter of 2015, the company said in a statement this week.

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EBIT is defined as: earnings before income taxes minus interest income plus interest expenses plus amortization of capitalized borrowing costs, Daimler said. (more…)

Takata CEO Outlines Plans to Resign

“I want to pass the baton.”

by on Jun.28, 2016

Takata CEO Shigehisa Takada has apologized for the airbag scandal but will soon step down.

The CEO of safety systems supplier Takata plans to resign, a move that could help the tarnished Japanese manufacturer raise the capital necessary for its survival.

Takata CEO Shigehisa Takada has come under intense fire in the wake of revelations about the company’s airbag systems, which have been linked to the deaths of at least 14 people worldwide, with more than 100 other injured. That has triggered the largest recall in U.S. automotive history, so far affecting more than 40 million vehicles.

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Takata has been struggling to supply enough new airbag inflators to replace those under recall, and its cash crunch has made it difficult to ramp up production. The company has been looking at restructuring opportunities that might include finding a buyer. (more…)

Takata Selling Off Auto Shares to Pay for Possible Compensation

Supplier sells off most of stake in Honda; other makers next.

by on Jun.14, 2016

Takata is selling of its stock holdings in automakers to bolster its financial resources.

Takata Corp. is girding for the worst by selling its shares in various automakers to raise funds for the compensation claims it expects to face for its defective airbags that have caused the recall of more than 24 million vehicles worldwide.

The supplier is selling the stakes with the carmakers’ approval, said Akiko Watanabe, a spokeswoman for the supplier, declining to give more details to Bloomberg News.

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The airbags have been tied to 13 deaths, including 10 in the U.S. The units have faulty inflators that can deploy with too much force and the resulting explosion hurls plastic and metal pieces into the vehicle’s passenger cabin. (more…)

Automakers Continue to Install Defective Takata Airbags on New Vehicles

And 2.1 mil defective inflators have been installed as replacements in older vehicles.

by on Jun.01, 2016

A Takata airbag after a crash.

(This story has been revised to include comments by FCA and Toyota.)

Even as federal safety regulators expand the ongoing recall of defective Takata airbags, four major automakers continue to install some of the potentially deadly devices on their newest vehicles, according to a new Senate report.

A number of manufacturers also are using defective Takata inflators as replacements for older airbags in about 2.1 million recalled vehicles. Federal regulators have approved that move as a temporary measure due to a shortage of replacements parts using newer, safer designs.

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The four manufacturers that acknowledge they are continuing to use defective Takata bags in new products are Fiat Chrysler, Mitsubishi, Toyota and Volkswagen, according to the report released today by U.S. Senator Bill Nelson, the ranking Democrat on the Senate Commerce Committee.

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Eight Automakers to Recall 12 Mil Vehicles for Takata Airbags

Largest recall in history continues to grow.

by on May.27, 2016

The latest recall takes in millions of Honda vehicles, including this 2010 Civic.

The biggest safety recall in U.S. automotive history is about to get even bigger, eight automakers revealing they will recall 12 million vehicles to replace faulty Takata airbag inflators.

The move follows last month’s announcement by the National Highway Traffic Safety Administration that it wanted as many as 40 million inflators replaced because they could malfunction during crashes. The exact number of vehicles that would cover wasn’t clear because some vehicles use more than one of the suspect devices.

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The list of manufacturers covered by the latest recall includes Toyota – which announced some other airbag service actions earlier this week – Fiat Chrysler, Mazda, Nissan, Subaru, Ferrari and Mitsubishi. And Honda will not only recall 2.2 million more automobiles but 2,700 of its Gold Wing motorcycles equipped with optional front airbags.

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Increasingly Desperate Takata Seeking Financial Bailout

Japanese airbag supplier planning to restructure, find new investors.

by on May.26, 2016

NHTSA recently added 40 million airbags to the recall.

Blamed for the largest safety recall in automotive history and facing potentially billions of dollars in legal and repair costs, embattled Japanese supplier Takata is reportedly exploring ways to restructure and bring in new investors.

Industry sources say that without new funding, Takata may no longer be viable. That could leave customers ranging such as General Motors, Daimler and Toyota stuck with the entire bill for replacing tens of millions of faulty airbags. It could also force nearly 20 manufacturers who have used Takata’s suspect airbag inflators to go searching for new sources of replacement parts.

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“The committee strongly believes that it is in the best interests of all Takata stakeholders for Takata and its automotive customers to reach a consensual resolution that addresses the costs of the inflator issues while enabling Takata to remain a viable and valued global supplier to the automotive industry,” Hideaki Sudo, a lawyer in Tokyo heading Takata’s new steering committee, said in a statement.

(more…)

Takata Declares Another 14 Million Airbags “Defective”

Acting “out of an abundance of caution.”

by on May.17, 2016

Takata expanded its recall of defective airbags by another 14 million vehicles.

What is already the largest safety recall in automotive history continues to get bigger, Takata announcing it will recall another 14 million airbags that could be prone to inflate improperly in a crash, a potentially life-threatening problem.

The move is actually the first in what will likely be a series of new recalls by the embattled Japanese supplier, Takata previously indicating it will ultimately add as many as 40 million inflators to the list. Prior to a May 4 agreement with the National Highway Traffic Safety Administration, 28.5 million airbag inflators had already been targeted.

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The precise number of vehicles that will be impacted by the new series of recalls has yet to be determined, as some models use several of the defective airbag systems. But earlier recalls had targeted about 24 million cars, trucks and crossovers sold in the U.S. (more…)

Safety, Not Profits, Come First, says DoT Sec. Foxx

Airbag recall will proceed, even if it puts Takata out of business.

by on May.11, 2016

"We've got to keep our finger on it," said Sec. Foxx.

Safety is the top priority, said Department of Transportation Secretary Anthony Foxx, and the expanding recall of potentially defective Takata airbags will proceed, even if that means putting the Japanese supplier out of business.

Takata produced the airbag inflators involved in the recall of about 24 million vehicles in the U.S. alone, devices so far linked to 13 fatalities worldwide. NHTSA last week announced it would add another 35 million to 40 million more Takata airbags on the recall list.

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There have been growing concerns that the expanded recall could put Takata out of business, but Foxx said that “can’t be the top concern we face,” during a Wednesday roundtable with reporters. “The airbags need to be recalled, and we have a responsibility to recall them.”

(more…)

Takata Ordered to Recall Up to 40 Mil More Airbags

Largest safety recall in history already impacting 24 mil vehicles.

by on May.04, 2016

High school senior Huma Hanif was the 11th person killed as a result of the Takata defect.

The largest safety recall in automotive history is about to get even bigger, federal regulators ordering embattled Japanese supplier Takata to recall as many as 40 million additional airbags linked to a defect already blamed for at least 11 deaths.

The previous recall involved about 24 million vehicles sold in the U.S. over roughly the last decade, with 14 manufacturers impacted. Virtually every other major carmaker will now be pulled into the latest recall.

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“This is the largest recall in American history, National Highway Traffic Safety Administrator Mark Rosekind told reporters on Wednesday.

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