Takata Corp.’s share price up, rejects an airbag withdrawal demand from the National Highway Traffic Safety Administration

The Japan-based airbag producer and supplier Takata Corp. is currently facing the anger of the car safety regulatory authorities in the U.S. after the company rejected their demand to expand its air-bag withdrawals and make them not only regional, but also country-wide.

Deputy Administrator David Friedman revealed in an e-mailed announcement that the companys response is being reviewed by the National Highway Traffic Safety Administration. The information that the company does not intend to make a withdrawal larger than 8 million cars was confirmed by the chief of investor relations at Takata, Hitoshi Sano.

David Friedman said in the statement, cited by Bloomberg: “NHTSA received Takata’s disappointing response to our demand for a national recall of certain driver’s side airbags. Takata shares responsibility for keeping drivers safe and we believe anything short of a national recall does not live up to that responsibility.” As reported by the Financial Times, the agency also added: “We will review Takata’s response in full to determine next steps.”

A total of more than 10 million vehicles have been recalled in the U.S. from ten car manufacturers for six years now. The problem with the vehicles was with the airbags, which were produced by Takata.

Takata has revealed that the airbag inflaters in some older-model cars are exposed at risk of exploding and sending a metal shrapnel into the drivers and passengers seat. The Japan-based company and 10 auto makers were forced by the safety regulators in the U.S. to withdraw vehicles in several hot, humid territories after receiving a number of reports on the airbags problems.

The recalls demand was registered by Takata, but argued against country-wide withdrawals.

Takata Corp. was 2.99% up to close at JPY 1 377 per share today, marking a one-year decrease of 51.20%. The company is valued at JPY 111.19 billion. According to the Financial Times, the 3 analysts offering 12-month price targets for Takata Corp. have a median target of JPY 1 750, with a high estimate of JPY 2 600 and a low estimate of JPY 1 300. The median estimate represents a +30.89% increase from the last price of JPY 1 337.