• Bloomberg

  • SHARE

Shares of Takata Corp., the maker of air bags that led to millions of vehicle recalls by global carmakers, fell the most in three weeks Monday after Honda Motor Co., its biggest customer, said it wouldn’t provide financial help.

The auto parts maker dropped 5.4 percent to ¥1,321, its steepest decline since Jan. 26, as of the close in Tokyo. Japan’s benchmark Topix index gained 0.7 percent.

Honda Chief Executive Officer Takanobu Ito said Friday the company has no intention of bailing out Takata, denying a December Nikkei newspaper report that cited him saying the carmaker would provide financial help if necessary.

Takata air bags that can deploy with too much force and spew metal parts at passengers have been linked to six deaths in the United States and Malaysia, leading to recalls of more than 20 million vehicles.

The parts-maker’s shares lost more than half their value last year amid expectations that recall-related costs and compensation might threaten the company’s survival.

Honda, which holds 1.2 percent of Takata shares, rose as much as 1.4 percent to ¥3,934.5, the highest in more than a year.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW