Takata earns less as its airbags de­flate

Weekend Argus (Saturday Edition) - - LIFE -

TOKYO: Ja­panese ve­hi­cle parts sup­plier Takata slashed its an­nual earn­ings fore­cast yes­ter­day, and said it had yet to de­ter­mine the full im­pact of a global safety re­call as cus­tomers be­gan ditch­ing its air bag in­fla­tors.

US ve­hi­cle safety reg­u­la­tors ear­lier this week linked Takata’s fail­ing in­fla­tors to the use of am­mo­nium ni­trate as a pro­pel­lant, prompt­ing car­mak­ers from top cus­tomer Honda to Mazda to say they would no longer fit the prod­uct in new cars, fan­ning con­cerns over Takata’s fu­ture.

Yes­ter­day Toy­ota said it, too, would stop us­ing Takata in­fla­tors con­tain­ing am­mo­nium ni­trate, which US reg­u­la­tors be­lieve can cause air bags to ex­plode with ex­ces­sive force, spray­ing shrap­nel in­side the ve­hi­cle. Reg­u­la­tors have linked them to eight deaths, all in Honda cars.

Takata said it ex­pected a net profit of 5 bil­lion yen (R572.6 mil­lion) in the year to the end of March – just a quar­ter of what it es­ti­mated three months ago.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.