Takata airbags recall could cost $24bn - report
Analysis undertaken internally by Takata suggests that a full recall of its airbag inflators could cost as much as US$24bn, according to reports.
Takata's share price plunged on the news. Bloomberg reported that a so-called 'worst-case' recall scenario would involve some 287.5m airbag inflators, according to an anonymous source 'familiar with the matter'.
Takata and the automakers still have to determine how the costs are shared, the person reportedly added.
Takata is in the grip of a severe crisis due to defective airbag inflators and worldwide recalls on models fitted with its parts across a number of brands. Approximately 34m vehicles are potentially affected in the US, with another 7m recalled worldwide. The company has also begun to explore ways to raise more capital to deal with rising recall costs.
Takata is likely to seek more capital later this year. According to Reuters, Kyodo News, without citing sources, said Takata was expected to short list companies to approach for investment and candidates would include top customer Honda Motor.