Takata Says Added Air-Bag Recall Charges Will Be LimitedCraig Trudell
Takata Corp., the maker of air bags at the center of an industrywide auto safety crisis, rebounded from its biggest-ever drop in Tokyo trading after saying additional charges related to recalls will be small.
The supplier to carmakers including Honda Motor Co. rose as much as 10 percent to 1,858 yen, the biggest intraday gain since May. Takata plunged 23 percent yesterday after the National Highway Traffic Safety Administration told motorists to show urgency in taking at least 4.7 million recalled cars into dealerships for fixes to potentially deadly air bags.
“Takata takes this issue seriously and will cooperate with officials and carmakers to fix these parts,” the company said in a statement filed with the Tokyo Stock Exchange. Any additional costs beyond the 45 billion yen ($421 million) one-time charge booked in its fiscal first quarter “should be very limited,” according to the statement.
Takata is under rising scrutiny amid escalating global recalls related to its faulty air bags, with Honda, its largest customer, calling back more than six million vehicles alone since 2008. NHTSA singled out models made by Honda, Toyota Motor Corp., General Motors Co., Nissan Motor Co., Bayerische Motoren Werke AG and Mazda Motor Corp. as cars in need of immediate fixes in its Oct. 20 statement.
GM plans to warn owners of 2003 and 2004 Pontiac Vibe hatchbacks in warm-weather areas not to allow front-seat passengers until defective air bags are replaced. The largest U.S. automakers built the vehicles with Toyota, which recalled 247,000 vehicles on Oct. 20. Toyota said it would instruct dealers to disable passenger-side airbags and tell drivers to limit other occupants to the back seat until the cars are fixed.
Takata forecasts a net loss of 24 billion yen for the 12 months ending March. The company had a 21.1 billion yen loss in the year ended March 2013, when it booked 30 billion yen in recall-related expenses.
The air-bag supplier traded at 1,802 yen, up 6.9 percent, as of 10:02 a.m. in Tokyo.