Takata to present restructuring plan, sources say image

The Japanese supplier plans to reorganize its structure preparing to propose a plan in this direction to automakers in early May, sources told Bloomberg.

With Honda announcing this week another massive recall due to Takata’s faulty airbags, the pressure on the Japanese automotive supplier is over the edge, as this safety crisis takes gargantuan proportions. According to Bloomberg, Takata plans to make a move to ease up some of that building 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, people familiar with the matter said. Takata aims to reach an agreement with automakers on the subject by the end of May, the sources revealed to Bloomberg. The company will also rely on a third-party panel to help formulate the plan, one of the people said. A financial accord would bring automakers some clarity over the costs, as these are quite high considering the massive numbers of cars involved in the scandal, especially for Honda, which has the most affected vehicles.

At least 10 deaths and more than 100 injuries have led to the recall of about 24 million US vehicles and 28 million inflators by 14 automakers, for airbag inflators that may rupture and send deadly metal fragments through the cabin. A panel commissioned by Takata to review its safety and quality efforts said this week the Japanese supplier must make significant improvements to address quality problems to avoid such defects in the future.

Via Bloomberg