Takata won't set aside more cash reserves for recalls, says official

By REUTERS | 15 May 2015

TOKYO/BEIJING: Takata Corp will not set aside more cash to pay for an expanding car recall linked to its air bag inflators because the defect cited by automakers was not "officially recognized," analysts cited its chief financial officer as saying.

Takata CFO Yoichiro Nomura was speaking to analysts Thursday at a company briefing that was closed to the media, but two analysts told Reuters the executive said he saw no reason to set aside more cash.

Nomura also said Takata had asked automakers to accept installment payments from the supplier for recall costs, according to the analysts who spoke with Reuters.

Earlier, Honda Motor Co and Daihatsu Motor Co said they would recall more than 5 million cars to replace potentially fatal air bag inflators made by Takata, a day after Toyota Motor Corp and Nissan Motor Co said they were taking back 6.5 million vehicles.