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Daicel: No New Customer Discussions After Recall of Takata Products

November 26, 2014 By Tara Hamilton

Daicel Corp., one of the air bag inflator producers said it has not received further discussions from its customers about their inflator sales after different automakers recalled their units worldwide due to potential defective airbags produced by Takata Corp, Daicel’s rival.

The Osaka-based company has 16% of the worldwide inflator market and contends against Takata. Daicel said it is not considering any new capital outlay for the production of airbags, until further notice.

Daicel: No New Customer Discussions After Recall of Takata ProductsTakata Corp, also based in Japan, warns a bigger full-year loss as it reported its quarterly revenue on Thursday. The company has 22% of the worldwide inflator market, securing $655 million or 75 billion yen in covering almost 9 million recalls of cars.

For many years, Takata’s air bag inflators have been used by different car makers across the globe. However, a United States regulatory probe focuses on the said products, ordering a recall of about 17 million vehicles worldwide due to potential defective products.

Two experts in the industry said the company might save 2 or more billion yen from its July-September revenue in covering charges for additional recalls.

On Thursday, Daicel announced its July-September earnings of 4.1 billion dollars as its shares rose more than a quarter during the recent two weeks. The company is also hopeful that it would obtain the automaker’s industry from Takata.

Filed Under: Business & Economy, IT & Diversified Sector Tagged With: Daicel, Takata

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