Takata seeks automaker aid, eyes air-bag deal with Daicel, sources say
By Maki Shiraki
TOKYO (Reuters) - Air-bag maker Takata Corp <7312.T> plans to request financial support from Japanese automakers and is laying the groundwork for top officials to resign over the recall of millions of vehicles with potentially faulty air bags, sources told Reuters.
Takata is also looking to team up with Daicel Corp <4202.T> to produce air-bag inflators, people familiar with the matter told Reuters on Saturday, as the embattled auto parts maker struggles to supply replacement parts for the millions of vehicles recalled worldwide.
Air-bag maker Daicel, which already supplies Takata, said on Saturday that had not been approached about any new tie-ups after Japanese media reported that Takata may form a joint venture with Daicel to produce air-bag components.
"We are discussing ways to work with Takata to supply safe (air bag) inflators, although we have not decided on any details," a Daicel spokesman said. Takata declined to comment on the reports.
U.S. transport authorities on Friday announced a new recall of around 5 million vehicles following the latest death caused by Takata's air-bag inflators, which can explode with excessive force and spray metal shrapnel inside vehicles.
Faulty air bags have resulted in 10 fatalities, all but one of them in the United States, and around 100 injuries.
As the number of recalled vehicles approaches 50 million, Takata would be required to foot the bill for recalls if it is found to be responsible for the faulty inflators.
Industry experts have estimated the cost of replacing each airbag at around $100 (70 pounds) per vehicle.
Takata also faces a U.S. investigation and class action lawsuits over its exploding airbags. Sources said it will ask for aid, including support over pricing from its automaker customers, next week when it explains the results of an inquiry into the cause of its defective inflators.
As part of its request for support, separate sources said Takata is making preparations for the resignation of the company's top brass.
Company officials, including Shigehisa Takada, the president and the grandson of the company's founder, has been widely criticised for his handling of the problem, after being slow to make any public statements regarding the recall.
Automakers in Japan and the U.S. have been dumping Takata as their supplier of inflators and have been hesitant to extend financial support to Takata so far.
Honda Motor Co <7267.T>, has said the supplier misrepresented and manipulated information about possible air bag defects. Honda is Takata's top customer and has recalled the most cars because of faulty airbags.
(Reporting by Maki Shiraki and Naomi Tajitsu, writing by Naomi Tajitsu, editing by Larry King)
