Takata's airbag recall cost could reach $24 Billion

Takata is the provider of airbags for various carmakers and is facing a massive recall of its airbag inflators which have proven defective on various vehicles. The cumulative recall of the inflators is expected to cost the company $24 billion. 

A source told Bloomberg that the comprehensive callback of Takata's airbag inflators would cost about 2.7 trillion yen ($24 billion) and involve the recall of 287.5 million airbag inflators. Takata and the automakers still have to determine how the costs are shared, the person said. Takata has declined to comment as of this time.

The National Highway Traffic Safety Administration said Takata airbag inflators have caused nine fatalities in the U.S. by rupturing and spraying plastic and metal shards at motorists. The regulator is investigating all Takata inflators that use a chemical propellant that's been banned from future modelsand gives the company until as long as the end of 2019 to determine the root cause of the flaw or prove the inflators are safe.

Source: Autonews