Monday, November 24, 2014

Takata share price - leads to risk of company collapse.

Beware, auto supplier / OEM execs.
This is what a deadly defect can do to your share price.

"Shintaro Niimura, analyst at Nomura Credit Research, said that US recall driver-side costs could go up to ¥70 billion, he also warned that Takata could need almost ¥200 billion of reserves in the event of a US nationwide recall that includes passenger-side air bags. [THIS RECALL IS IN THE WORKS]
“If the company makes any missteps, we cannot say that there is ‘zero’ chance of the company dying a sudden death – that is, being hit with excessive debt or facing a cash-insolvency bankruptcy” Mr. Niimura said."