The global recall of 287.5 million airbag inflators manufactured by Takata will cost the Japanese supplier $24 billion in the worst-case scenario, Bloomberg reported after talking to a person familiar with the matter.
Unsurprisingly, this shocking revelation led to a huge 19.46% drop at the Tokyo Stock Exchange. Takata has fallen 48.7% since the start of 2016 (44.8% in 2015 and 51.5% in 2014), according to Reuters.
The worst-case cost figure is almost four times more than the revenue Takata has forecast for the fiscal year ending today.
So far, more than 50 million Takata airbags have been recalled.
Last fall, the U.S. National Highway Traffic Safety Administration (NHTSA) also ordered the company to stop producing airbag inflators with ammonium nitrate, and imposed a $70 million fine for past failures that directly caused the death of nine American drivers. An additional $130 million would become due if Takata fails to meet its commitments or if additional violations are discovered.