business

Bankrupt Takata faces angry shareholders

12 Comments

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"Why couldn't they have addressed these issues faster, when the recalls first emerged back in 2008 and 2009?"

They knew about the defect much earlier than that in 2006. However, I have a question for the investor. If you were aware of them producing faulty equipment, why didn't you bail out before the ship sank? It's been over ten years since the faults were first documented. I would have sold my shares right then and there.

6 ( +9 / -3 )

Hello? Why didn't you dump your stocks back when the scandal surfaced? I've owned a couple of dogs in my day, and I got out of them ASAP...instead of holding on to them to the bitter end and then crying about it.

Next, they'll be asking the government for financial compensation. Ah, the mind of the Japanese shareholder.

6 ( +7 / -1 )

Takata though they could ride the storm by swiping everything under the rug.

They lost their gamble.

I feel sorry for the employees and other companies relying on Takata business.

As for the shareholders, well, too bad.

That said, executives should be sued.

7 ( +7 / -0 )

What about the rest of the hundreds of thousands of potentially deadly Takata airbags still installed around the world? Does bankruptcy mean it becomes somebody else's problem? I had mine changed earlier this year, 10 years after the problem was made public.

3 ( +3 / -0 )

Disillusioned: Takata is not changing them. The car manufacturers are.

Ultimately, the car manufacturers have to find airbags from other suppliers.

See the Japanese government pouring your tax money to JP car manufacturers.

5 ( +5 / -0 )

@Tumbledry - I think you should read up on it before spouting aspersions. Only 38 million of the 100 million airbags have been replaced. Takata will be taken over by another company, but leave a small workforce producing replacement airbags. Car companies are not replacing them with different brands. They are waiting for Takata to produce replacements. The car companies are replacing them with newer Takata airbags, but have no stock to continue. The next round of recalls is in the US is scheduled for 2020 because that is how long it will take the Takata skeleton crew to produce enough for another large scale recall. They estimate it will take ten years to produce enough to replace the other 60 odd million airbags. Meanwhile, there are 62 million people driving around with bombs in their steering wheels.

0 ( +2 / -2 )

Next, they'll be asking the government for financial compensation. Ah, the mind of the Japanese shareholder.

To be honest, this seems to be a mentality of shareholders all over the world. Way too few people realize that they take a risk when buying stock, and think its just a way to get free money that somebody else will have to bail them out of if they fail.

1 ( +2 / -1 )

Disillusioned: Changing a defective Takata airbag and another Takata airbag will take years as you mentioned.

Car manufacturers will have to replace them with other suppliers faster because you cannot ask customers to drive too much or leave the car in the garage.

Selling a car with a defective airbag is border criminal too.

0 ( +1 / -1 )

The majority of people in the stock market are ignorant at best, utterly stupid at worst.

If people took a week to read one of Peter Lynch's or Warren Buffett's books they would probably never lose money on a stock like Takata again.

You don't invest in a company that is mired in scandal or financial problems unless it has fired the problem board of directors and management and replaced it with trustworthy, reliable people, and even then you only do it after you have researched the company books yourself and calculated the real share value vs the current stock price or the expected future price. If you can't do these things then you should stay out of the market entirely.

The writing was on the wall for Takata years or months ago. Those investors should have demanded new management, or just sold off all of their shares. Shorting the stock would have been the obvious choice for people trying to get some money back, considering how things were going recently, but how many Japanese investors do that..?

1 ( +2 / -1 )

Has anyone behind the coverups by major Japanese companies actually received more than a fine & a suspended sentence? (genuine question). Maybe that is the reason more serious action is not taken sooner. If their maximum downside is to have to do a deep bow in front of some cameras they will blindly hold onto their hope of getting out of it somehow. If they faced a genuine penalty or serious jail time some of these people responsible might be a bit more "chatty" to investigators and the investigations wouldn't be drawn out so long.

0 ( +1 / -1 )

Who is angry? The shareholders? What about the people lying in their graves??

1 ( +1 / -0 )

Of course, they announced it over the week-end so nobody (the average joe) could do a thing about it, well it is not like also they did not get a warning about it, but I am quite sure the board members got the time to sell short their shares before everybody else, I hope for someone to investigate brokers transactions happening a few weeks or days before their announce.

-1 ( +0 / -1 )

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