Regions

Takata to meet major customers to discuss business forecasts

January 25
6:17 AM 2016

Takata Corp, the air-bag provider, is reportedly planning to meet its major clients in order to discuss its business forecasts. The main purpose of the meeting is to dismiss scandals as well as to measure the attitude of automakers to the circumstance that the company would ask for financial backup, according to reports.

Nissan Motor Co. and Honda Motor Co. received an invitation from. Takata for a meeting on Friday, Bloomberg said citing a person with knowledge of the matter. The US transport authorities announced a fresh recall of about 5 million vehicles subsequent to the recent death caused by the Japanese firm's airbag inflators that could burst with over force and spring metal cartridge inside the vehicles.

Shares of the Japanese firm leapt to its lowest on Monday trading, following a statement by the US regulator that the recent death would count another 5 million airbag inflators to the 23 million already expelled, Bloomberg noted. The recent recalls comprise vehicles by Honda, Volkswagen AG, Audi AG, Saab AB, Daimler AG, BMW AG and Mazda Motor Corp.

In December, a driver of the 2006 model Ford Ranger died when the truck veered off a South Carolina road and clashed with a hindrance. The Japanese firm's airbag exploded and contributed to the death, Gordon Trowbridge, a spokesperson of National Highway Traffic Safety Administration, told Bloomberg.

Masahiko Hirokaw, a spokesman of Daicel, said that Takata is in discourse with its competitor Daicel Corp in order to assure a balanced supply of airbag inflators and that no compromise has been made regarding whether the airbag manufacturers would invest in a joint venture.

The WCVB said that shares of the Japanese auto components maker plunged nearly 10% on Monday in Tokyo after the announcement of additional airbags recall. Last year, the Japanese auto parts maker, was ordered to pay millions in regulatory fines that pushed the company into deep sorrow.

The company reported a net loss of 5.5 billion yen for the first six-month of 2016 and also broadened its annual forecast to a loss of 30 billion yen.

Analysts have expected that the airbag maker could face billions as charges related to airbags recall, The Wall Street Journal said. Three different probes are seeking into the cause of the defective airbags. The first one is headed by a research institute in Germany and Takata, the second by Honda and the third by a group of automakers who recalled their vehicles over the defective Takata's airbags.

Anthony Foxx, Transportation Secretary, said that the Japanese firm constructed and marketed defective airbags and failed to give full details to customers. However, the company said it is working together with the officials to fasten actions to promote vehicle safety. "Our heartfelt condolences go out to the driver's family," the company said in a statement. 

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