The price of Takata has plunged nearly 20% Wednesday on the Tokyo Stock Exchange, according to information from Bloomberg News indicating that the Japanese equipment estimated at 2,700 billion yen (21 billion euros) cost of airbag recalls in its worst scenario.
According to Bloomberg, citing a person familiar with the, Takata reached this sum by encrypting the entire cost of any reminder 287.5 million airbags, presumably corresponding to all potentially defective models.
The stock has fallen at the end of 100 yen (-19.45%), the maximum loss allowed for the day.
In addition, according to Reuters, Honda had quietly asked Takata to change the design of airbags after explosions in the manufacturer’s vehicles have been associated with at least four injuries and one death. All without informing US regulators. A revelation that could weaken Honda and Takata involved in some 100 federal procedures and dozens of state procedures.
Honda, which was the first customer of Takata prior to distance recently, also saw its stock plummet in the wake of these news reports: it fell by 3.62% to 2992.5 yen.