Takata Corp. raised provisions for its air bag recalls that involve more than a dozen auto manufacturers, after denying reports that the biggest safety crisis in the industry’s history will expand further.
The auto parts supplier will book a combined 20.1 billion yen ($189 million) in charges, 16.6 billion of which was decided after reviewing air bag recall costs, according to a statement on Monday. The remaining 3.5 billion yen charge is related to settlements with consumers injured by the devices.
Takata plunged earlier by the most in a month, after the Nikkei newspaper reported that U.S. regulators plan to call for expanded recalls. The shares fell 9.2 percent to 373 yen at the close in Tokyo, dropping its market capitalization to about 31 billion yen.
The National Highway Traffic Safety Administration has told carmakers that recalls will widen to all vehicles with air bags lacking a moisture-absorbing desiccant that keeps the devices from deteriorating, the Nikkei reported Saturday, citing unidentified sources. There are more than 100 million such vehicles worldwide, the newspaper said.
No decision has been made on expanding U.S. recalls and Takata is in talks with NHTSA, the company said in an earlier statement Monday. The air-bag maker has lost more than half of its value this year.
