Earlier this week, German automaker Daimler announced 840K-vehicle recall over Takata airbag issue. The company plans to take a $383.96M (340M euros) hit to its fiscal year 2015 results to pay for the recall.
Earlier this week, German automaker Daimler announced 840K-vehicle recall over Takata airbag issue. The company plans to take a $383.96M (340M euros) hit to its fiscal year 2015 results to pay for the recall.
The U.S. National Highway Transportation Safety Administration (NHTSA) advised Daimler of the potential problem with some Takata airbags installed in Daimler vans and Mercedes-Benz cars. The company used this information to determine that roughly 705K Mercedes-Benz cars and around 136K Daimler vans needed to be recalled in the U.S.
This recall decreases Daimler’s 2015 net profits to $9.8B (8.7B euros) for 2015. Daimler group earnings before interest and tax (EBIT) come in at $14.8B (13.2B euros).
To date, the defective Takata airbag inflators have caused ten deaths worldwide. Nine of those fatalities have been in the U.S. and one in Malaysia. All but one death happened in Honda vehicles. Honda has been the hardest hit of the automakers in this crisis. The non-Honda vehicle fatality was in a Ford Ranger pick-up, which prompted that U.S. automaker to broaden the scope of its own recall.
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