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Airbag recall costs push Takata to an annual loss again

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By Euronews  with Reuters
Airbag recall costs push Takata to an annual loss again

Takata has posted its third annual loss in the past four years, hit by costs for recalls of its potentially deadly airbag inflators which can deploy with too much force.

The Japanese company also said it is considering restructuring, including a drastic review of its inflator division and the sale of non-core businesses.

The net loss was 13.1 billion yen (105 million euros) for the year to March.

Takata also forecast a net profit this year of about the same amount but only if there are not more recalls.

So far 90 million vehicles face recall to fix the airbag inflators.

Due to the explosive used in them, the inflators can inflate violently, firing metal shrapnel into the vehicle. The problem has been blamed for at least 11 deaths and more than 100 injuries, mainly in the United States.

Recall costs have so far been comparatively small as carmakers have borne most of the burden. But Takata is widely seen as having to take on more of the costs although just how much is unclear as the company and carmakers have yet to decide responsibility over the root causes of the defect.