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Takata Air-Bag Report Clears Way for Cost Talks With Carmakers

  • German research group investigated cause of inflator defect
  • Recall costs were estimated at $12.7 billion by Jefferies

Takata Corp. said the German research institute it hired to investigate the root cause of its defective air-bag inflators submitted a report, clearing the way for crucial talks to begin with customers over how to split billions of dollars in recall costs.

The air-bag maker received the report from Fraunhofer Institute in July, spokeswoman Akiko Watanabe said Friday by phone. The report doesn’t specify whether responsibility rests with the supplier or carmakers, she said.