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]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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