Takata shares jump almost 18% on settlement announcement
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Shares in Japanese airbag maker Takata jumped as much as 17.7 per cent on Friday after four global automakers agreed to pay $553m to settle with owners of vehicles for losses linked to the recall of the company’s products.
Shares had pared gains to trade up 13.4 per cent at ¥448 in morning trade.
Documents filed on Thursday with a Miami federal court indicated Toyota, Subaru, Mazda and BMW had reached a proposed settlement to compensate owners of 15.8m vehicles for losses due to the recall of Takata’s airbags.
The settlement, announced Thursday and subject to court approval, did not include other automakers facing claims over the airbags, including Ford, Honda and Nissan, nor did it include personal-injury claims arising from the airbags.
In January Takata agreed to $1bn in criminal penalties, including $975m in restitution paid to carmakers who bought the airbags and consumers who were injured by them.
Comments