You could have never heard about Takata today unless you were deeply involved in the auto making business. But, price recalls do have a way of putting companies in the spotlight.
The Japanese auto supplier is the world’s second-largest company when it comes to safety systems and has come to the general public’s attention because over the past few years has been involved in numerous recalls.
Toyota, look the world’s largest automaker, has seen new batches of cars recalled because of Takata’s faulty airbags and has even moved to advise US owners to put the passengers in the back of the car because the faulty airbags can send metal debris and shrapnel flying inside the cabin.
At the center of an escalating global recall (actually a series, that started some years ago, making us wonder why the situation hasn’t been resolved by now), Takata has seen Honda – its biggest client – recall more than 6 million cars since 2008. Besides the Japanese automaker, Takata equipped cars have also been recalled by Toyota, Nissan, BMW, Ford, GM and Chrysler.
Following Toyota’s recall news, the airbag supplier’s stock dropped 23%, the steepest fall since the company was listed back in 2006. At 1,686 yen at the close in Tokyo, the Japanese supplier has lost 44% of its share value this year, compared to an average drop of 7.4% for the country’s benchmark Topix index.