Takata Says it Has Sufficient Funds for Recall

Takata Says it Has Sufficient Funds for Recall

The massive Takata airbag recall is now affecting about 21 million vehicles worldwide, but the company says it has the funds to deal with it.

Currently linked to five deaths, the company is still in the midst of analyzing collected inflators to determine the root of the defect, which causes shrapnel to be sprayed inside the cabin after the airbags explode with excessive force. Four deaths in the U.S. have been connected to the recall while one more has been documented in Malaysia that were all in Honda vehicles. According to a recent report, the company has put aside $774 million for the recalls but is already facing dozens of class-action lawsuits as well as a U.S. criminal investigation.

SEE ALSO: NHTSA to Force Expansion of Takata Airbag Recall

“Takata is prioritizing the supply of replacement parts,” said Takata CEO Shigehisa Takada. “We have sufficient funds put aside, and we are not concerned that we are under-capitalized. We will take steps on the financing side if needed.”

So far, Takata has identified and corrected manufacturing problems, which include the mismanagement of ammonium nitrate. The company says it has been analyzing about 100 inflators per day to determine the cause of the defect.

[Source: Automotive News]