FRANKFURT: Automakers have held a crisis meeting to see how they can help Japanese airbag manufacturer Takata after the recall of millions of vehicles worldwide due to a fault in the airbags, a German magazine reported on Wednesday.
According to the monthly Manager Magazin, Takata is unable to produce a sufficient number of airbags to replace the faulty ones. And it was impossible to find an alternative manufacturer in time, the magazine said.
At the crisis meeting, it was discussed whether a buyer could be found for embattled Takata or whether to help it out financially, the report said.
Also at the meeting, German automakers in particular discussed a possible solution for Takata’s plant in Freiberg in eastern Germany, which has not been affected by the fault, the magazine continued.
Neither Volkswagen and its Audi brand, nor Daimler’s Mercedes-Benz nor BMW were willing to comment on the report.
A week ago, the manufacturers recalled a total of 2.5 million vehicles in the United States because of the fault.
The recalls became necessary after it was found that the Takata airbags can rupture and hit occupants of a car with shrapnel.
At least 10 deaths, including nine in the United States, have been tied to the faulty airbags. Automakers worldwide have been forced to recall more than 20 million cars to have the airbags replaced.
Investigators suspect that the airbag inflators and the propellant inside can deteriorate, especially in consistently hot and humid conditions, causing them to misfire.
Kyodo News reported that Takata is considering trimming its global air bag operations, including consolidating production plants in Europe and shedding overseas jobs.
Takata could also sell some non-core businesses as part of a plan to raise money to pay for the cost of recalls.
A Takata spokesman declined to comment on the report, which pushed shares in the company to a one-week high today.
Investigators are trying to identify the root cause of the defective air bags. If Takata, which has been criticised for the way it has handled the recalls, is found to be liable for the defect, it could leave the company with a recall bill already estimated at more than US$3bil.
Automakers including Honda Motor Co and Toyota Motor Corp, which have to-date been paying for replacement air bags, could also take this as a cue to cut off financial lifelines to Takata.
Reuters last month reported that Takata chairman and CEO Shigehisa Takada was willing to step down and take responsibility for the recalls as part of wider management reforms within the company.
