Retail and Marketing

Japan to recall 7 mn more vehicles with Takata airbags

​Tokyo, May 27 (IANS) Japan's transport ministry on Friday said seven million more vehicles with Takata-made airbags will be recalled within the country, bringing the total number of vehicles called back as a result of the Takata airbag defect in Japan to a whopping 19.6 million. The decision came after the US National Highway Traffic Safety Administration (NHTSA) ordered earlier this month that airbag inflators using ammonium nitrate as propellant without desiccant shall also be recalled, Xinhua news agency reported. With recall expanded in the US, Japan's Ministry of Land, Infrastructure and Transport has required automakers to recall vehicles equipped with airbags with the same problems also in Japan. The total number of Takata-made airbags to be called back is expected to top 100 million globally, costing over $9.12 billion to Takata Corp. and automakers, though how much each will shoulder is not decided yet. The cost is expected to be a huge burden for the Tokyo-based company, which recorded a net loss of $1.19 trillion in fiscal 2015, its second straight year of red ink, amid impact of the global recall of its airbag inflators. The Takata-made airbag inflators, which could explode with too much force, spraying metal fragments at passengers, have been reportedly linked to at least 10 deaths worldwide.​