autoevolution
Car video reviews:
 

Takata Has Begun Selling Shares It Owns In Automakers To Raise Money

Takata is in the middle of a fundraising process, in which the supplier has begun selling stocks it owns in various automakers.
Tokyo stock exchange 1 photo
The Japanese component supplier has reportedly received permission from the automakers to sell the shares, so we are not writing about an illegal scheme on behalf of Takata.

According to Automotive News, the Japanese supplier almost sold all of its 2.2 million shares in Honda Motor Company in late April. For some reason, the information only came to public view recently, when it was published in a Japanese newspaper.

Takata owns stocks in Toyota Motor Corporation, Nissan Motor Co, Fuji Heavy Industries (Subaru’s parent company), Suzuki Motor Corp, and Mitsubishi Motor Corporation.

As you can observe, Takata had covered its stock options will almost all of the major Japanese automakers, as Mazda does not seem to be on the list.

According to Bloomberg, Takata’s stock options are worth approximately $88 million, judging by a calculation made on closing prices of Monday by specialists from the reputable American publication.

Takata needs a massive cash infusion to handle the costs of the recalls it must make because of its mistakes. However, the cost of the Takata recalls is in the area of billions of dollars, so simply selling all of the stocks Takata owns in various automakers is not going to cut it for the supplier.

Takata’s airbag recall is the worst event of this kind to hit the automotive industry. We are talking about years of manufacturing potentially defective parts and attempting to cover up the facts regarding them. Reports have 13 confirmed deaths because of faulty airbags from Takata, while the number of injured people is in the hundreds.

Latest demands from regulators are expected to bring the total number of recalled components to 100 million airbags and their respective inflators. As you already know if you have followed the topic, Takata’s defective airbag inflators may explode with excessive force and send plastic and metal shrapnel towards the occupants.

 
 
 
 
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories