Takata’s airbag crisis could cost up to $24 billion image

The massive global safety recall triggered by Takata’s defective inflators will definitely prove to be a very costly business for everyone involved, Bloomberg reports.

The explosive and deadly inflators made by Takata affected so far approximately 23 million vehicles and fourteen automakers in the United States, while more than 29 million airbags were part of the related recall, which triggered the biggest safety crisis ever in the auto industry. Because of the scandal, the Japanese supplier is currently facing a financial predicament and some estimates are showing that a comprehensive callback of its airbags would cost about 2.7 trillion yen (24 billion dollars), a person familiar with the matter told Bloomberg. The source also said that the recall could go up to a gargantuan 287.5 million inflators, adding that Takata and the automakers still have to determine how the costs are shared.

There are as many as 120 million Takata airbags in US vehicles that have ammonium nitrate and the supplier agreed in September to pay a 70-million-dollar penalty to NHTSA in a settlement that included its commitment to stop making inflators that use the volatile substance by 2018. The faulty airbags have caused at least ten deaths, including nine in the US, and more than 100 injuries worldwide. There were many reports lately pointing out that Takata knew that its inflators were prone to rupture as early as 2000 and allegedly discarded the tests results.

Via Bloomberg