Takata may cost Toyota, Honda billions
Air-bag maker is unlikely to pay debts to Japanese carmakers
KENTARO IWAMOTO, Nikkei staff writer
TOKYO -- Toyota Motor and Honda Motor said Monday they may not be able to collect the billions of dollars they are owed by Japanese air-bag maker Takata, now that the recall-hit company has filed for bankruptcy protection.
Toyota said that the total of 570 billion yen ($5.1 billion) in recall-related and other expenses owed by Takata will either be lost or repaid late.
However, the automaker said the impact on its earnings outlook is small, as the company had already factored in the loss.
Honda also said that most of the money it is owed by Takata -- estimated at 556 billion yen -- will likely not be collected. But like Toyota, the carmaker said the impact on its earnings outlook would be "limited," as the loss had already been factored in.
Nissan Motor said it also sees little hope of collecting the 90 billion yen in recall-related expenses it is owed, and that it has already factored that loss into its earnings.
Mitsubishi Motors and Subaru also announced their concern over collecting recall-related cost owed by Takata. Mitsubishi said the impact to its earnings outlook is "small," while Subaru said it is "scrutinizing" how much the possible loss will affect its financial statements.
Takata leaves behind liabilities in excess of 1 trillion yen, including recall costs shouldered by automakers.