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Airbags Takata: Stellantis announces a new provision of 768 million euros to manage the withdrawal

Stellantis’s group announced Wednesday that he had made a new disposition of 768 million euros to cover the expenses linked to the removal of vehicles concerned with the Takata scandal. In total, provisions amounted to 1.78 billion euros for the group since 2021.

“Annus horribilis” for Stellantis, whose profitability collapsed last year, in particular affected by a slowdown in the US market. Amid the ranges and sales problems, the group also had to administer in Europe this time a large retreat after the takata defective airbag scandal.

This retirement campaign took the group to the 14 brands to announce a new provision of 768 million euros on Wednesday to cover the expenses linked to the repairs of hundreds of thousands of vehicles.

This provision is not the first spent by Stellantis after this scandal. In total, since 2021, the group has provided 1.78 billion euros to manage Takata Airbags recovery campaigns. In its annual 2023 report, the group had indicated that it had deployed a “Takata Budget” and has provided 951 million euros for recovery campaigns.

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Other groups have supplied

Stellantis is not the only group that has made provisions related to these reminders for defective air bags, which have affected many automotive brands for more than a decade. Ford pointed out in his 2020 annual report that the reminders had cost him $ 610 million, according to them, remembering that other provisions could follow.

General Motors, therefore, provided $ 1.1 billion in 2020 linked to the Takata scandal, even according to them, and also remembers that he had probably not finished. “Any additional reminder related to these airbags could have notable consequences on our results and our cash flows,” GM explained.

Fiat Chrysler had provided $ 114 million in 2018 for reminders in North America since 2014.

Takata Airbags’s problem has been known since the beginning of 2010 in the United States. The suspicious deaths have involved these airbags provided by the Japanese company Takata, which admitted having hidden an important defect behind the explosions. In 2017, the company declared bankruptcy.

Author: Louise de Maisonneuve
Source: BFM TV

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