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Takata Faces Possible Restructure Following Airbag Scandal

Isabella Rolz7 months ago

According to Automotive News, Takata Corp is planning to conduct a large-scale review of it inflator division and the sale of “non-core businesses,” possibly resulting in a restructure.

About the Pending Takata Restructure 

The declaration was given after the supplier mentioned its third annual loss was due to the increase in recall costs; however, Takata hasn’t announced how much it will have to pay for the recall costs, the firm only said that “Once we determine the cause of the airbag defect, then we'll discuss costs with automakers.”

Reports indicate Takata’s airbag inflators can inflate with excess force, releasing metal shrapnel into the vehicle. So far 11 deaths and more than 100 injuries have been linked to the defect.

If Takata is found to be solely responsible for the concern, it could be up to $9 million in recall costs. Takata also plans announce the proclamation in the United States to remove the 64 million inflators, 

Description of the Takata Airbag Recall

  • The Takata’s airbags have been blamed for 10 deaths in the United States and one international death so far. The majority of these deaths have been linked to Honda vehicles.
  • The U.S Transport announced a recall of up to 40 million of the company’s airbags, and more than 50 million that have been recalled globally.
  • Takata posted a net loss of $120 million for the fiscal year that ended in March.

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