Takata Close To Installment Agreement With Automakers Over Airbag Recalls
Like consumers making payments over several months for their purchases, Takata is asking automakers to pay its part of the airbag recall in installments.
The automakers are reportedly close to sealing the deal that would grant the beleaguered supplier the ability to spread its financial responsibility for the recalls instead of paying everything all at once, Bloomberg reports.
Takata is also meeting with its bankers to ensure it has the cash flow needed to make good on those payments, with an anonymous source stating the supplier hasn’t created the conditions that would merit a call-back of its loans by the banks during FY 2014.
The deal follows an ongoing recall action of Takata’s airbags, affecting over 28 million vehicles from 10 different automakers around the globe, with Honda bearing the brunt of the crisis as the supplier’s biggest customer.
[Photo credit: Takata]
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Did they ever find the CEO? I remember reading an article that he disappeared when word of this issue broke cover.
How is Takata going to make the payments? I mean, if you were an automaker, is Takata anywhere on your list of airbag suppliers when a car is due for a refresh? It's not like there aren't any other airbag makers out there.
Airbags that grenade and slice you, guardrails that impale you, uncleanable colonoscopes that poison you....doesn't anyone check any more?
Trust to the free market.