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Takata recall rises to 30 million

Wednesday, May 13, 2015 - 01:58

Japan's three biggest carmakers say they will expand a huge global recall triggered by potentially fatal air bags made by Takata Corp. As Hayley Platt reports, it comes as Toyota and Mazda announce partnership plans.

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Just when Takata may have thought its air bag inflator problem had gone away - it's back. Japan's Toyota and Nissan Motor companies are recalling another 6.5 million vehicles globally. Honda too are making recalls but haven't said how many yet. The potentially fatal air bags can erupt with too much force, spraying shrapnel inside the car. Six deaths have been linked to the defective airbags, all on cars made by Honda. Toyota and Nissan said their recalls were precautionary only and that no accidents or injuries had been reported. Nissan CEO Carlos Ghosn. (SOUNDBITE) (English) CHAIRMAN AND CEO OF NISSAN MOTOR, CARLOS GHOSN, SAYING: "I think whenever you have a problem of this size, there is high level of solidarity between different actors to make sure that we solved it and it's behind us. There will be the time to drive the conclusion after." The news comes days after Takta posted a record loss for 2014. But despite all the problems, it wasn't all bad says James Bevan from CCLA. SOUNDBITE: James Bevan, Chief Investment Officer, CCLA, saying (English): "The underlying cash flow was better than had been expected. We therefore have this rather bizarre situation where the real news is dreadful, stock prices get pummeled but underlying progress can be better than expectations, presenting an excellent long term buying opportunity for patient investors." Toyota, Japan's biggest automaker is recalling the largest number of cars, around 5 million, mostly from Japan and Europe. That brings the total worldwide since 2008 to roughly 31 million - on a par with a General Motors recall last year. Toyota also announced plans to team up with Mazda to help share the cost of technology. Automakers worldwide are increasingly joining forces to cut costs by spreading the load of heavy investments. Sources have said the two companies were in talks to expand their partnership in fuel-efficient technology.

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Takata recall rises to 30 million

Wednesday, May 13, 2015 - 01:58