Despite an international safety scandal that affects millions of vehicles, Takata continues to profit. The parts supplier just reported its quarterly financial results, and the company's net income grew to 8.1 billion yen ($69 million at current rates), compared to 2.8 billion yen ($24 million) in the same quarter last year. The business attributed the strong numbers to growing sales in the US and Asia, according to Automotive News citing a Bloomberg report.
The airbag recalls and the associated fallout has somewhat hurt Takata's bottom line, though. In the nine months through December, the safety campaigns cost the company 10.5 billion yen ($89 million), Automotive News reports. The company's stock price also dropped 64 percent since last year, and major investors stepped away because Takata execs didn't satisfactorily answer questions about the recalls.
Drivers in the US continue to see the airbag scandal grow. This week, Honda recalled the driver side inflators in 2.23 million vehicles, including a few as recent as the 2016 model year. Ford and Mazda also expanded their safety campaigns, and the National Highway Traffic Safety Administration expects more automakers to make similar announcements soon, including Audi, BMW, Daimler Vans, Mercedes Benz, Saab, and Volkswagen.
So far, Takata CEO Shigehisa Takada has refused to step down from the company amid the scandal, and a statement from the company said that he had "no intention" of leaving. According to Automotive News, insiders claim the supplier will present a restructuring plan in May that will a split the significant recall costs with the affected automakers. Takada will possibly also retire to appease investors.
The airbag recalls and the associated fallout has somewhat hurt Takata's bottom line, though. In the nine months through December, the safety campaigns cost the company 10.5 billion yen ($89 million), Automotive News reports. The company's stock price also dropped 64 percent since last year, and major investors stepped away because Takata execs didn't satisfactorily answer questions about the recalls.
Drivers in the US continue to see the airbag scandal grow. This week, Honda recalled the driver side inflators in 2.23 million vehicles, including a few as recent as the 2016 model year. Ford and Mazda also expanded their safety campaigns, and the National Highway Traffic Safety Administration expects more automakers to make similar announcements soon, including Audi, BMW, Daimler Vans, Mercedes Benz, Saab, and Volkswagen.
So far, Takata CEO Shigehisa Takada has refused to step down from the company amid the scandal, and a statement from the company said that he had "no intention" of leaving. According to Automotive News, insiders claim the supplier will present a restructuring plan in May that will a split the significant recall costs with the affected automakers. Takada will possibly also retire to appease investors.
Sign in to post
Please sign in to leave a comment.
Continue