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takata airbag
Takata reported its third full-year loss in four years as it grapples with the rising costs of recalling airbags.
The Japanese airbag maker announced a net loss of 13.1 billion yen ($120.5 million) for its financial year ending in March.
Takata has been hit by a huge recall of faulty, potentially deadly, airbags used by car makers worldwide, which may affect more than 100 million vehicles.
The fault has been linked to the loss of 11 lives and more than 100 injuries.
The company has acknowledged some airbag inflators explode with too much force and spray metal shrapnel into the car.
Takata has paid out $70 million in fines so far and the company’s market value has dropped more than 80% since 2014.
Some 50 million vehicles have been recalled globally and last week, US authorities added up to 40 million more.
US regulators believe the volatile chemical used in the inflators, ammonium nitrate, can cause airbags to explode with excessive force.
Globally, 12 car makers are affected with Honda being the worst hit.
Toyota, Honda, Mazda and Ford have said they will stop using Takata airbags containing ammonium nitrate for their future models.
Takata also produces seatbelts, child seats, and other safety-related car parts.
For the current year, the company forecast a net profit of 13 billion yen.
Takata shares ended on May 11 2.5% higher, after losing 11% this week and more than 80% over the year.
Toyota has decided to recall another 1.6 million vehicles equipped with faulty airbags.
The automaker has recalled nearly 15 million vehicles fitted with the bags since 2013.
This recall includes 22 models sold in Japan, including the Corolla and Vitz, made between January 2004 and December 2005, as well as vehicles in Italy, the UK and Spain.
The airbags, manufactured by Japan’s Takata, can explode with too much force, sending out shrapnel.
No injuries were reported in Toyota vehicles related to the latest defect, which affects the passenger seat airbag, but a person in a Nissan car was injured recently in Japan.
Photo AP
Toyota, Ford, Honda and Nissan have decided not to use Takata inflators in vehicles under development.
At least eight people have been killed worldwide and hundreds injured in incidents involving the bags.
In the US, where over 19 million vehicles have been recalled because of the problem, it faces penalties of up to $200 million as part of a deal with the National Highway Traffic Safety Administration.
The recalls have wiped out Takata’s profits.
This month, it reported a half-year loss of 5.6 billion yen ($45.8 million) due to recall costs and cut its profit forecast for the full year by 75%.
Honda and Daihatsu have decided to recall some 5 million cars globally to replace potentially deadly airbag inflators made by Takata.
The move comes just a day after rivals Toyota and Nissan said they would be recalling 6.5 million vehicles over the same issue.
So far, the six deaths linked to Takata airbags have all been in Honda cars.
In April, Honda cut its profit growth forecast after missing the mark last year on recalls and other issues.
Honda said that the models affected included the Fit subcompact and would not affect its cars sold in the US, where most of the deaths occurred.
It plans to use replacement parts supplied by Sweden’s Autolive, Japan’s Daicel and Takata in the recalled cars.
Daihatsu, meanwhile, said it would recall the Mira minicar.
Other than Honda, all other carmakers said the recalls were precautionary and no accidents or injuries had been reported.
Investigations did show that Takata airbag inflators were not properly sealed and could be damaged by moisture. It is alleged that the airbags can burst under pressure, spraying shrapnel inside the car.
The latest announcements bring the total number of cars recalled because of Takata’s airbags to about 36 million since 2008.
The car equipment maker faces multiple class action lawsuits and criminal and regulatory investigations in North America.
Following the latest recall, Takata’s shares were down 5.6% in Tokyo.
A total of 6.5 million Toyota and Nissan cars are being recalled worldwide to replace potentially faulty airbag inflators produced by Takata.
Toyota said it was recalling just under 5 million cars, including the Corolla, Vitz and other models made between March 2003 and November 2007.
Nissan is recalling about 1.56 million cars over the same issue.
The Japanese carmakers said the recall was for investigative purposes and no accidents or injuries have been reported.
Photo Reuters
Toyota, the world’s biggest carmaker, said the recall affected 35 of its models made around the world and that it would include 1.36 million cars in Japan.
The move is the latest in the saga of potentially exploding airbags made by Japanese car parts maker Takata that has been linked to at least six deaths – all in Honda cars.
After the recalls by Toyota and Nissan were announced, Honda – Japan’s No 3 carmaker – said it was also preparing to announce more car recalls related to the air bags.
No details were given on the number of cars Honda would recall.
In March, Honda had said it was recalling another 100,000 vehicles in the US related to the airbags.
About 25 million vehicles with Takata airbags have been recalled worldwide by 10 different carmakers since 2008.
The National Highway Traffic Safety Administration (NHTSA) has expanded a recall of vehicles with potentially dangerous Takata airbags to 7.8 million.
The NHTSA warned that owners should take “immediate action”.
If deployed with force, the airbags have the potential to eject deadly shrapnel at passengers.
The NHTSA has identified 10 manufacturers who used Takata as a supplier, including General Motors, Honda, and Toyota.
The agency has told those who might own affected vehicles to check the list at www.safercar.gov, and specifically warned those living in more humid climates such as Florida and Hawaii to get their vehicles inspected.
“Responding to these recalls, whether old or new, is essential to personal safety and it will help aid our ongoing investigation into Takata airbags and what appears to be a problem related to extended exposure to consistently high humidity and temperatures,” said NHTSA deputy administrator David Friedman in a statement.
The NHTSA has expanded a recall of vehicles with potentially dangerous Takata airbags to 7.8 million
Initially, the NHTSA said that only 4.7 million cars could be affected, but it has increased the number of vehicles twice in recent days.
Japanese supplier Takata warned recently that older airbags could explode with too much force, which would send plastic and metal parts towards passengers with enough force to injure them.
Takata said it estimated that around 12 million vehicles around the globe may contain the parts.
The recall notices have been ongoing for the past 18 months, but regulators and car manufacturers have warned that only a small percentage of those cars potentially affected have been returned and inspected.
The majority of the affected vehicles – more than five million – are Honda cars manufactured between 2001 and 2011, including the Accord, Civic, and Pilot models.
