Subaru counts cost of Takata failure by as £580m hit destroys profit growth prospects

 
Oliver Gill
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Takata's bankruptcy makes it hard for car manufacturers to recoup losses (Source: Getty)

Japanese carmaker Subaru has been left counting the cost of failed airbag manufacturer Takata, today booking an 81.3bn yen (£580m) hit.

The special loss destroyed any chances of Subaru growing full-year profits, which the firm guided would be 228.5bn yen compared with 282.5bn yen in the previous year. Subaru had previously guided full-year profits would be 282.35bn yen.

In May, the Japanese car giant said it had accrued costs of approximately 73.5bn yen after a recall of Takata inflators.

But with the airbag manufacturer filing for bankruptcy, it is uncertain whether or not Subaru will be able to recoup the costs.

Read more: World's largest car recall grows as US identifies new Takata problems

Last month, Takata recalled an extra 2.7m defective airbags following testing by US authorities.

Takata filed for bankruptcy in Japan and the US in June under the weight of liabilities topping $10bn.

US-based Key Safety Systems has bought all of the Japanese manufacturer’s assets – aside from those relating to airbags – with what remains of Takata expected to be wound up.

Read more: Japanese airbag maker Takata files for bankruptcy

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