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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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.

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