Takata said that by 2018, it would phase out bag inflators powered by ammonium nitrate, whose flaws are at the center of the problem. It plans to develop a replacement model that solves the safety weaknesses.
The outcry has led to the largest recall in automotive history, more than 100 million vehicles, affecting at least 18 car brands, from Ford to BMW to Toyota.
According to NHTSA, there are 46 million recalled Takata inflators in 29 million vehicles in the U.S. Additional recalls are coming over the next three years, involving 69 million inflators in 42 million vehicles, the agency said.
With its recalls, Takata has substituted other propellants or upgraded the bags. The company said that most of the problems occurred with older devices in hot climates, which prevented proper bag inflation.
The mess has harmed the company finances. Investment firm Jefferies Group has estimated that Takata will end up paying $7 billion, and Bloomberg News has put the figure at more than three times that. As of its last annual report, ending in March, the corporation’s net worth was $1.2 billion, a fraction of its potential liability.
According to the report, Takata suffered losses in two straight fiscal years, losing 13.1 billion yen ($128 million) in the year ending March 31, and 29.6 billion yen the year before that. The company said that was due to lost business and fines related to the air bags. In the July-September quarter this year, because of asset sales, it returned to profitability, for the moment.
From January 2014, when news of the air-bag problem was spread widely, Takata stock, traded in Tokyo, has lost 96 percent of its value.
As a result, the company has put itself up for sale. It has said it will announce the successful bidder in 2017’s first quarter.
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