The Takata Corporation recently revealed that the total expenses around their exploding airbag scandal might just cost the company approximately $24 billion. This estimate comes after an analysis conducted by Tokyo-based Takata, as of late.
Takata has conducted these recalls over the several years, as the company is looking to replace the airbag inflators they produce, which have the susceptibility to explode at drivers, propelling fragments at them. Sadly, the recall was alerted due to injuries and fatalities that resulted from the exploding airbag inflators made by Takata.
Safety regulators, such as the National Highway Traffic Safety Administration have tried to exercise patience when it comes to giving the company the time it needed to rectify this dangerous situation, however it seems like time may be running out for Takata; and a full recall just may come to fruition sooner than later, due to the danger these airbags pose.
Keep in mind, the $24 billion total is the maximum amount that Takata is projecting that this recall may cost; however, should the company be forced into a scenario that even resembles a full recall, the cost may increase, and simply cripple the company. Since 2001, they have sold over 287 million airbag inflators worldwide to auto manufacturers such as, Ford, Honda, Mercedes-Benz, Volkswagen, Audi, and Saab.
MSN reports that while there is potential for a percentage of the recall expenses to be absorbed by some of the car companies that have purchased the airbags from Takata; at the end of the day, this would have to be negotiated by between the auto makers, and the company … and nothing is ever guaranteed.
Regardless, things don’t look too good right now, for Takata.