Takata Corp (TKTDY) shares a new 7 year low as the 10th death caused by faulty airbags leads to further their air bag recall to cover over 5 million US vehicles.
More Deaths
Another death has been linked to Takata Corporation’s faulty airbags. World wide there have been over 10 deaths that are directly linked to the excessive explosive force from the faulty airbags exploding.
Recalls Grow
Over 24 million vehicles in the US have been recalled due to the problem, and over 60 million globally. The recalls may not be reflected in this years profit statement, Takata has said it should expect a profit over ¥5 billion net this year. Shareholders should understand that this should be reflective of the fact that recall related payments are not likely to make it on its financial statements.
Takata Sinks
With stock down over 50% this past year, Takata sunk another 10% in Tokyo on Monday. This followed the recall of over 5 million more vehicles in the U.S. The National Highway Traffic Safety Administration made the move on Friday to expand the massive recall that included many of today’s U.S. vehicles that would include Ford (F), Nissan (NSANF), and Toyata).
Sources
http://www.wsj.com/articles/takata-shares-hit-seven-year-low-as-air-bag-recalls-grow-1453698641
http://money.cnn.com/2016/01/25/investing/takata-more-deaths/
