Takata Recall Could Cost $24 Billion, Shares Drop By 20 Percent

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Shares of Japanese automotiveparts maker Takata dropped by 20 percent in Tokyo after a report claimed that the company's comprehensive airbag inflator recall could cost $24 billion.

A report by Bloomberg stated that if Takata issued a comprehensive recall of 287.5 million airbag inflators, it could cost the Japanese company a rather painfully expensive 2.7 trillion yen ($24 billion).

Takata won't have to pay the big bill on its own but its negotiation with carmakers who make use of its airbag inflators.

Takata hasn't commented on the figure but the massive figure sent its shares in Tokyo into a nosedive as the company lost 19.45 percent of its market value.

Takata's exploding airbag inflators have already claimed the lives of 10 people worldwide.

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Story first published: Thursday, March 31, 2016, 15:11 [IST]
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