According to the Nikkei News, Japan’s Takada Corporation is planning to sell its US automotive interior materials company and its holdings because of airbag defects or will be responsible for huge recall costs.
The company that Takada plans to sell is a subsidiary of Irvin Automotive Products, located in Michigan, USA. The company was acquired by Takata in 1898 and sells the materials needed for car seats and other interior components to automakers such as Ford. It is about 500 million US dollars.
In addition, Takada will sell most of its shares at a low price. By the end of March 2015, in order to maintain cross-shareholding, the company held a total of approximately 16 billion yen (at current exchange rate of approximately US$143 million) from major car companies such as Honda, Toyota and Nissan and Mitsui & Co.
It is reported that the total number of vehicles recalled by Takada's defective airbags has exceeded 60 million vehicles worldwide, and the recall cost exceeds 600 billion yen. Takada may be responsible for part of the recall.
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