Takata Corporation is seeing a wider loss as it reels from the damage caused by faulty airbags installed in cars made by automakers including General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F), Scarlet Fu said on a report for Bloomberg Surveillance.
“Troubled airbag maker Takata [is] widening its loss forecast. The company says that it cannot estimate its full financial liability as regulators urge automakers to speed up recalls. Takata expects to lose $218 million this fiscal year, up from about $210 million,” Fu said.
General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) – as well as other automakers including BMW, Chrysler, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota – have been hit with car safety issues after it was revealed that airbag’s made by Takata installed in cars made between 2000 and 2011 can inflate so much force that they can send metal and plastic shrapnel flying, potentially hitting a vehicle’s occupants. Bloomberg has earlier reported that the faulty airbags are linked to at least four deaths.
General Motors Company (NYSE:GM) cars affected by the faulty airbags are Pontiac Vibe models from 2003 to 2005 and the Saab 9-2X from 2005. Ford Motor Company (NYSE:F) cars affected by the issue include the Ranger model from 2004, the GT model made from 2005 to 2006 and the Mustang model made from 2005 to 2007.
General Motors Company (NYSE:GM) is involved in the recall stemming from the issue because of its former division, the now-defunct Pontiac. Toyota made the Vibe cars being recalled because of the issue.
By June 30, General Motors Company (NYSE:GM) shareholders included Kyle Bass’ Hayman Advisors which reported owning about 5.59 million shares in the automaker.
By the same date, Ford Motor Company (NYSE:F) shareholders included David Tepper’s Appaloosa Management Lp which owned about 7.29 million shares of the company. The stake in Ford Motor Company (NYSE:F) was valued then at about $125.63 million.