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Airbag Recalls Could Cost Takata $24 Bil

Report sends Japanese supplier’s shares crashing.

by on Mar.31, 2016

A new report suggests that it could cost Takata as much as $24 billion to resolve its airbag recall.

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.

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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…)