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Takata said to put worst-case auto airbag recall costs at $24 billion

Takata and the automakers still have to determine how the costs are shared.

By Yuki Hagiwara, Bloomberg, Takako Taniguchi | Updated on March 30, 2016
Moisture seeping into Takata’s inflators was determined to be the reason Takata air bags have ruptured. (AP Photo/Jens Meyer)

(Bloomberg) — Takata Corp., the supplier behind the auto industry’s biggest recall ever, estimated that a comprehensive callback of its airbag inflators would total about 2.7 trillion yen ($24 billion), according to a person familiar with the matter. The shares plunged to a record low.

The worst-case recall scenario would involve 287.5 million airbag inflators, said the person, who asked not to be identified because the company’s deliberations are private. Takata and the automakers still have to determine how the costs are shared, the person said. A representative for Tokyo-based Takata declined to comment.

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