Japan’s Takata Corp. continues to hustle its way through one of the largest safety crises ever – with analysts citing the company’s chief financial officer saying it was not going to set aside cash for the latest batch of recalls.
The chief financial officer said the company was done putting away cash to pay for the rising string of recalls because the latest batch of safety campaigns done by the Japanese automakers – linked to the ongoing airbag inflator issue – was not a fault the safety parts manufacturer actually recognizes. The Japanese automakers unveiled recently a new string of recalls linked to the airbag inflator defect, with the companies claiming Takata improperly sealed them against moisture, which took the total of the airbag-recalled safety campaigns to around 36 million vehicles worldwide. The issues for Takata and no less than ten automakers started way back in 2008 and the recalls mounted since 2014 – when the previously regional safety campaigns were upgraded to national levels. The Takata produced airbag inflators can explode with too much force, sending metal shards and other debris inside the cabin at high velocity. Six persons have died so far and more than one hundred injuries have been linked to the defect.
Takata CFO Yoichiro Nomura spoke about the latest string of recalls on Thursday at a company briefing for analysts that was not open for media representatives, but Reuters subsequently spoke to analysts who pointed out the executive believed the company had no argument in putting away more cash reserves.