Takata Might Be Purchased By Investors, Over 30 Interested Parties Have Emerged

Pair of airbags deployed in Mercedes-Benz S-Class 1 photo
Photo: Mercedes-Benz
Japan’s Takata Corporation is not in the best position from an image point of view, but some investors are still interested in the company.
After many years of being a respected automotive supplier, the company’s airbag inflators were found to be defective. They started a recall with several of their automotive partners, and then an investigation discovered that the corporation knew about the problem and proceeded anyhow.

In the entire airbag recall fiasco, Takata’s troubles keep getting worse. Japan and the USA keep putting pressure on the company to demonstrate its ammonium nitrate airbag inflators are safe, and they have until 2019 to show it. Otherwise, they might have to initiate an additional recall.

With Takata Corporation is such a tricky position, you would image that the company is on the way to bankruptcy. Instead, the airbag maker and safety restraint supplier has many investors interested in saving it from such a fate.

According to Automotive News, approximately 30 potential investors are interested in providing Takata with financial support. One of the sources close to the matter informed Reuters that around half of the mentioned investors that have contacted the new restructuring advisor of the company are from the automotive industry. Other investors come from different sectors of business, like private equity investing.

As usual, the representatives of the company have denied comments on the potential deals they might sign with presumed investors. The names of the reportedly interested investors are not mentioned. Takata is known to be considering the sale of its non-core businesses, as well as reviewing its inflator division and pondering the possibility of shutting it down.

However, we do know that Takata is looking for financial support, as the company will not afford the costs of all of the recalls it will have to do in the coming years. As some of you already know, recall campaigns that are made from a supplier error come at the cost of the manufacturer of the defective parts.

Meanwhile, automakers still have costs related to these situations, as their technicians in the authorized service departments of their dealerships must handle the replacement of all the defective components.
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About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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