A Chinese company plans to grab the opportunity opened by the Takata’s airbag crisis by stepping upfront in the automotive parts business.
Many major automakers have already terminated the partnership with Takata, announcing they are no longer buying its inflators. The global airbag crisis in which the Japanese supplier is finding itself engulfed is an excellent opportunity for its rivals, such as Autoliv or ZF, to expand their involvement in the automotive parts market. They have already increased their pace to build more inflators to meet the gap left by Takata. There is also another company that aims to take advantage of this opening. Ningbo Joyson Electronic is one of the largest auto suppliers in China, conducting business with General Motors and Volkswagen. The firm made its expansion intentions clear, as it bought the US-based airbag supplier Key Safety Systems for 920 million dollars last month, Bloomberg reports.
“It’s very difficult for Takata to recover from this and the company may be facing a bankruptcy crisis,” Tang Yuxin, Joyson’s chief executive officer, told to Bloomberg in an interview. “All of this has given us a heaven-sent opportunity to enter the industry. What was a market split among four is now shared among three players, so the opportunities naturally have increased a lot.”
Takata reportedly plans to make a move to ease up some of the financial pressure, by preparing a restructuring program and bring it in front of carmakers, a plan that also includes a proposal of sharing the recall costs, sourced said last month. Takata aims to reach an agreement with automakers on the subject by the end of May.