The number and scope of recalls of Takada Airbags need to be further expanded. The number of additional recalls of airbag gas generators has reached 35 to 40 million.
"We predict that if Takada survives the recall, it will eventually become a smaller supplier of parts. Takada may need to exit the airbag-related business, and may also experience a phased compromise in order to survive. Said Scott Upham, founder of Valient Market Research Group.
According to the China Economic Net's comprehensive foreign news report, the National Highway Traffic Safety Administration (hereinafter referred to as "NHTSA") announced on Wednesday that the number and scope of Takata airbag recalls need to be further expanded. The number of additional recalls of airbag gas generators has reached 35 to 40 million. The expansion of the scale of the recall made Gao Tian even worse, which aggravated the company's survival crisis.
"The expansion of airbag recalls has dealt a severe blow to Takada and its future prospects," said Scott Upham, founder of Valient Market Research Group. "We predict that if Takada survives the recall, it will eventually become a smaller one." The supplier of parts and components. Takata may need to withdraw from the airbag related business, or it may go through the staged compromise of bankruptcy in order to survive."
The expansion of the number and scope of recalls has caused a deeper blow to Takada’s chairman Takada Maojiu. So far, he has not been able to successfully control the crisis caused by Takata in the recall. In the past year, the airbag recall incident has evaporated 75% of the market value of Takada Family Corporation.
According to Credit Suisse Group, the recall of 50 million vehicles will cost about 375 billion yen (about 3.5 billion US dollars), which has exceeded the current net assets of Takada. According to a statement issued by Credit Suisse on March 30, the number of recalls of Takada airbags may increase to 75 million.
“ Takada is working hard to reach long-term, effective solutions with regulators and vendors,†said company spokesperson Jared Levy.
In a statement released on Monday, Takada increased the cost of recalling airbags, which is expected to cost 20.1 billion yen, excluding the recall costs involved in the investigation. The company plans to announce its 2015 full-year results on May 11.
According to informed sources, Takada is seeking financial support to supplement capital. Takada expects that by the current rate of airbag recalls, by the end of March 2017, cash and cash equivalents may fall by 24% to 49.7 billion yen. At present, the market value of Takada is 31 billion yen.
NHTSA said in February that it is adjusting all airbags containing ammonium nitrate in Takata. Researchers employed by the Automakers' Union say that moisture penetration into the interior of the balloon may be the main cause of balloon rupture. When the airbag is ejected, the use of a desiccant prevents degradation of the unstable compound and moisture. According to NHTSA, the basic cause of airbag rupture has been determined. The combination of various environmental factors has led to the degradation of ammonium nitrate in the airbag, which in turn causes the airbag to be ejected too much, causing the airbag to rupture and eject debris.
The re-expansion of the number of Takata airbag recalls has made Takata's living conditions more challenging. The airbag recall has also become the largest and most complex recall in US history.
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