You are here

Daimler sees US$384 million expense for Takata air-bag recall

DaimlerHead100216.jpg
Daimler AG said recalling about 841,000 vehicles to fix potentially defective Takata Corp air bags will cost the German automaker about 340 million euros (S$534 million) and cut into the profit it reported last week for 2015.

[TOKYO] Daimler AG said recalling about 841,000 vehicles to fix potentially defective Takata Corp air bags will cost the German automaker about 340 million euros (S$534 million) and cut into the profit it reported last week for 2015.

The automaker will repair about 705,000 Mercedes-Benz cars and 136,000 Daimler vans, according to a company statement. The cost of replacing Takata's air bags, already the largest consumer-safety recall in US history, reduces group net income for last year to 8.7 billion euros from the 8.94 billion euros outlined on Feb 4.

Daimler is joining automakers including Honda Motor Co and Ford Motor Co in widening air-bag recalls following the ninth US fatality tied to Takata's safety devices. The Japanese supplier's air-bag inflators can deploy with too much force and rupture, spraying plastic and metal at vehicle passengers.

Daimler fell 0.3 per cent to 59 euros as of 9:32 am in Frankfurt, counter to a 0.3 per cent gain in the STOXX 600 Automobiles & Parts Index. Daimler shares have dropped 28 per cent over the past year.

sentifi.com

Market voices on:

Honda said last week that it will recall an additional 5.7 million vehicles globally, including 2.2 million in the US.

Other automakers included in the latest recalls were Volkswagen AG, Mazda Motor Corp, Saab Automobile and BMW AG.

BLOOMBERG

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom