Daimler said it would account for the cost by revising its 2015 financial results published last week, lowering the net profit to 8.7 billion euros and group earnings before interest and tax (EBIT) to 13.2 billion euros, from 8.9 billion and 13.5 billion euros respectively.
“This (340 million euros) is quite a big shortfall but the main message is that the current financial year will not be affected,” said Frankfurt-based Bankhaus Metzler analyst Juergen Pieper who keeps his “buy” recommendation on Daimler’s stock.
Last month Takata Corp said it was declaring 5.1 million additional inflators defective after new testing, following the death of a driver in December,2006 after an airbag rupture.
Takata’s inflators can explode with too much force and spray metal shrapnel into vehicle passenger compartments. They are linked to at least 10 deaths worldwide and more than 100 U.S. injuries. To date 14 automakers have recalled a total of about 24 million U.S. vehicles involving about 28 million Takata air bag inflators.
In December the U.S. National Highway Traffic Safety Administration named a former Justice Department official as a monitor to help regulators supervise one of the biggest and most complex safety recalls ever undertaken in the U.S. automotive industry.
Following this, it is to be noted that in November the U.S. regulators have fined Takata of $70 million and is still undergoing an investigation by the Justice Department. Additionally in December the U.S. National Highway Traffic Safety Administration named a former Justice Department official as a monitor to help regulators supervise one of the biggest and most complex safety recalls ever undertaken in the U.S. automotive industry. So now its time for Daimler owners to have a check of their airbags as a safety measure.