Gold Silver Reports – Takata Corp. surged the most in more than a year in Tokyo trading after the Sankei newspaper reported that Japanese automakers may provide support to the air-bag maker to safeguard access to its technology.
The report said the companies may jointly invest in Takata, spread the recall claims against the air-bag maker over several years and postpone their demands for price cuts for parts. Honda Motor Co., the automaker most affected by the recalls, said it’s waiting for the results of the investigation into the root cause of the defect and isn’t planning to extend aid or invest in Takata, according to spokesman Teruhiko Tatebe.
Takata gained 17 percent to 941 yen as of 1:05 p.m., the biggest intraday increase since November 2014. Honda fell 4.4 percent to 3,739 yen while the benchmark Topix Index dropped 2 percent.
Takata’s air bags have been found to explode with such force to turn metal casings into shrapnel and are linked to nine deaths and about 100 injuries. In the U.S., the regulator has ordered a dozen automakers to replace Takata air bags in at least 19 million vehicles, the biggest safety recall in U.S. automotive history.
The company declined through an outside spokesman to comment on the report. Nissan Motor Co. and Toyota Motor Corp. declined to comment. – Neal Bhai Reports