You are here

Takata considering trimming air bag operations

Thursday, February 18, 2016 - 10:54

37392883 - 05_02_2016 - TAKATA-RESULTS_.jpg
Takata Corp is considering trimming its global air bag operations, including consolidating production plants in Europe and shedding overseas jobs, Kyodo News reported.

[TOKYO] Takata Corp is considering trimming its global air bag operations, including consolidating production plants in Europe and shedding overseas jobs, Kyodo News reported.

The move would be part of a restructuring plan by the Japanese firm which is struggling with a global recall of potentially faulty airbag inflators, the report said.

Takata could also sell some non-core businesses as part of a plan to raise money to pay for the cost of recalling about 50 million vehicles due to exploding air bags, which has caused at least 10 deaths so far, it said.

A Takata spokeswoman declined to comment on the report, which pushed shares in the company to a one-week high on Thursday.

sentifi.com

Market voices on:

Investigators are trying to identify the root cause of the defective air bags. If Takata, which has been criticised for the way it has handled the recalls, is found to be liable for the defect, it could leave the company with a recall bill already estimated at more than US$3 billion.

Automakers including Honda Motor Co and Toyota Motor Corp, which have to-date been paying for replacement air bags, could also take this as a cue to cut off financial lifelines to Takata.

Reuters last month reported that Takata Chairman and CEO Shigehisa Takada was willing to step down and take responsibility for the recalls as part of wider management reforms within the company.

REUTERS

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom