Takata forecasts bigger losses over air bag fiasco

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Takata forecasts bigger losses over air bag fiasco

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Losses from potentially defective air bags mean Japanese firm
Takata is warning of even bigger than expected full-year losses.

Revealing that Takata’s bosses bowed in apology to customers on Thursday over the recall of 17 million vehicles worldwide.

The recalls were needed because faulty inflators in the air bags can explode with excessive force firing metal shards at occupants.

The company has 22 percent of the global market for air bag inflators – the explosive device that allows the air bag to inflate in a fraction of a second in the event of a crash.

The problem has been linked to four deaths in the United States.

Amid uncertainty over potential future recalls and the likely cost of a growing number of legal cases Takata’s shares have almost halved in value since January.

Its full-year net loss is now forecast at 25 billion yen (174 million euros).

Takata has already set aside 75 billion yen (523 million euros), which it believes is enough to pay for the recall of up to nine million cars.

It has not put aside funds to cover potential US class action lawsuits against it.