AS Takata Corp comes under scrutiny for air bag defects, bankers are weighing up the potential fallout for the Japanese family behind the 81-year-old company, and the third-generation CEO who controls it.
As one reference for what Takata may face, Toyota Motor paid at least US$2.6 billion over a US recall crisis four years ago linked to four deaths, all in one car. Defective Takata air bags have been linked to five deaths: four in the United States and one in Malaysia of a pregnant woman.
Bankers with relationships with Takata are brainstorming financing proposals - though not yet with Takata directly - as recall costs increase and lawsuits loom. Raising new capital could threaten the control...