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Daimler recalling 840000 vehicles in US for Takata air bags
The expense for this precautionary recall is estimated at a total of about € 340 million (Rs 2,600 crore).
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Daimler said it had been notified by the U.S. National Highway Traffic Safety Administration (NHTSA) that certain airbag models from the manufacturer Takata (7312.T), which are also installed in Mercedes-Benz cars and Daimler vans, are potentially defective.
German carmakers Volkswagen and Daimler are recalling 1.5 million vehicles in the United States due to potentially faulty airbags made by Japanese company Takata Corp, the focus of a long-running global safety crisis. The Stuttgart-based group on Tuesday reiterated expectations that earnings from the continuing business would increase only slightly this year after making big gains in 2015, reflecting higher investments and a more moderate rise in sales in China.
It is the latest is a series of recalls prompted by concerns about Takata’s airbags.
The recall affects models built between 2006 and 2014, a spokesman said, declining to comment on how much the recall could cost. More than 24 million vehicles have been recalled in the US because of the problem, which is blamed for 11 deaths worldwide.
Daimler has booked a $384 million charge to pay for vehicle repairs.
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Takata said other automakers involved in the most recent expansion include Honda Motor Co, Volkswagen AG (VOWG_p.DE) and its Audi unit, and Mazda Motor Co.