Takata Corp. said Monday it will book an additional special loss of around ¥20 billion ($188 million) for the year ended March due to costs related to the global recall of its potentially lethal air bag inflators.
Automakers are recalling 60 million cars because inflators made by the Japanese supplier could explode with excessive force, spraying shrapnel at drivers and passengers.
Of the special loss for fiscal 2015, Takata will book ¥16.6 billion in additional warranty costs for products made in the United States, as well as ¥3.5 billion to settle lawsuits over product liability abroad.
The number of cars recalled is expected to top 100 million as U.S. regulators look to expand the models needing coverage, and this will increase the financial burden on Takata, sources close to the matter said earlier.