An official announcement could be made as early as this afternoon.
The Takata airbag recall is about to get even larger as several sources are reporting the company is in talks with the U.S. government about recalling tens of millions of new airbags.
An official announcement could be made as early as this afternoon but The Wall Street Journal is reporting Takata will have to recall at least 35 million airbags. This is a massive number and it doesn't even factor in the 28.8 million airbags that have already been recalled.
If the numbers pan out, Takata could be forced into bankruptcy as Automotive News is reporting Credit Suisse estimates recalling 50 million vehicles would cost the supplier about $3.5 billion. The substantial sum is reportedly more than the value of Takata's net assets. More troublingly, Takata reportedly estimated a comprehensive recall of 287.5 million airbag inflators would cost about $25.2 billion.
Takata's survival remains an open question but the importance of the airbag recall was demonstrated less than two months ago when a 17-year-old from Texas was killed when the airbag in her 2002 Honda Civic sent shrapnel flying into her face and neck. This cut her carotid artery and she was pronounced dead at the scene.
Source: Automotive News