Japanese air bag maker Takata Corp. (TKTDF.PK) said it has sufficient funds to handle a global recall, Nikkei reported citing an interview with the company's chief executive Shigehisa Takada, the grandson of Takata's founder.
Carmakers, including Honda Motor Co. and Toyota Motor Corp., have recalled over 20 million vehicles worldwide due to issues related to Takata's air bags.
Earlier this month, Takata unveiled several safety measures as its faulty airbags reportedly caused at least five deaths in the U.S. However, the auto parts supplier stopped short of a nationwide recall as demanded by the National Highway Traffic Safety Administration.
U.S. regulators are considering legal procedures if Takata does not comply with a request to expand recalls.
Takata has earmarked $774 million to deal with recalls. Takada said the firm is prioritizing the supply of replacement parts, and it has sufficient funds put aside, adding the company is not concerned of under-capitalization.
From January 2015, the Tokyo-based company will accelerate production at its Mexico plant by 30 percent to 450,000 units per month to be supplied in North America. It will also increase output capacity in China and Germany to make replacements for other markets within a year.
The stock added 4.7 percent in Tokyo trading on Thursday to 1,327.00 yen.
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