Airbag Recall Could Cost Takata $24 Billion - NBC Bay Area
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Airbag Recall Could Cost Takata $24 Billion

More than 50 million airbags around the world have been recalled to replace Takata's inflators

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    Airbag Recall Could Cost Takata $24 Billion
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    A deployed airbag is seen in a 2001 Honda Accord at the LKQ Pick Your Part salvage yard on May 22, 2015 in Medley, Florida. The largest automotive recall in history centers around the defective Takata Corp. air bags that are found in millions of vehicles that are manufactured by BMW, Chrysler, Daimler Trucks, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota.

    Japan's Takata Corp. could face about $24 billion in costs to recall its airbag inflators in a worst case scenario, sending its shares tumbling to an all-time low, Bloomberg news reported.

    A scenario involving the withdrawal of all airbag inflators made by Takata containing ammonium nitrate — the explosive chemical used in potentially faulty air bags at the center of a global recall — would affect 287.5 million inflators, Bloomberg quoted a person familiar with the matter as saying. 

    The figure exceeds industry estimates that Takata could face a recall bill of more than $3.5 billion and dwarfs the company's current assets of about $1.3 billion as of December.

    Shares in Takata plunged by their daily limit to give the struggling company a market value of just $302 million.