Nissan expects Takata to pay all costs related to air bag recall: executive

TOKYO Mon Jul 28, 2014 5:38am EDT

A Logo of Takata Corp is seen outside the company's headquarters in Tokyo April 12, 2013.  REUTERS/Yuya Shino

A Logo of Takata Corp is seen outside the company's headquarters in Tokyo April 12, 2013.

Credit: Reuters/Yuya Shino

TOKYO (Reuters) - Nissan Motor Co Ltd expects Takata Corp to pay back to the automaker all costs related to the recent air bag recall, Corporate Vice President Joji Tagawa said.

Nissan, Japan's second-biggest automaker by global sales, recalled 755,500 vehicles globally in June over potentially explosive air bags, supplied by Takata. He declined to give the cost related to the recall.

Separately in China, Nissan is seeing slightly excessive dealership inventory, Tagawa said, adding that while sales could drop in the coming months, the company still aims to hit its profit target for the world's biggest auto market.

Tagawa was speaking to reporters on Monday after Nissan reported a larger-than-expected rise in April-June operating profit, helped by improved sales in the Unites States and China.

(Reporting by Yoko Kubota; Editing by Chris Gallagher)