The airbag crisis triggered by the Japanese auto part supplier forced the company to raise provisions to cover the recall costs.
As it expects for the recall campaigns over the faulty airbags to expand further, Takata said that it was raising its provision by 16.6 billion yen (156 million dollars) for the financial year that ended in March, for the total special losses to rise now to 20.1 billion yen (189 million dollars). Furthermore, it also expects to drop another 3.5 billion yen (32.88 million dollars) over settlement claims related with accidents over the explosive inflators.
The special losses include the 70 million dollar fine imposed by the US National Highway Traffic Safety Administration back in November, but do not include costs related to recalls that are still under investigation. The safety agency said in April that the recall would probably expand further, as there were still around 80 million potentially defective inflators fitted on US vehicles, all of them having the volatile substance that could lead to deadly ruptures.
Takata’s faulty airbags affected so far more than a dozen auto manufacturers, forcing them to recall at least 60 million airbags worldwide, while they have been linked to 11 deaths so far and more than 100 injuries, mainly in the United States. To cope with the escalating costs, the company has reportedly begun looking for a financial backer and has plans to draw up a list of candidates by August.