Takata expands loss guidance for the year as airbag recall costs grow image

Japan’s Takata Corporation was until recently a little known auto parts maker – although it’s the second largest in the world when it comes to safety equipments.

Now, as the Japanese supplier has been the maker of defective airbags in millions of vehicles around the world recalled since 2008 – with around 8 million units in the US alone (2013 and 2014 recalls) – it’s been intensely scrutinized. That’s because the maker has produced inflators that can explode with too much force and send shrapnel flying at high velocity inside the cabin.

At the center of the mounting safety crisis (the second-largest of the year, following GM’s ignition switch debacle), Takata has announced its guidance for the annual loss has been updated and even said it’s not able to fully estimate the financial impact of the recalls as regulators are still probing the issue.

The safety-parts producer has forecast a deeper 25 billion yen ($218 million) loss for the full fiscal year, up from already record-breaking 24 billion yen guidance. The Tokyo-based company added that it also has difficulties tallying the damage claims it has received until now in the United States.

The new statement also marks a turn for Takata – as the company previously said just last month that its additional recall related costs would be small after it booked a 45 billion yen charge in the first fiscal quarter of the year.

Via Bloomberg