The crisis involving Takata Corp.’s defective air bags has started to hurt demand for its steering wheels, according to people familiar with the matter.
The Japanese auto supplier, whose air bags are behind the largest automotive-safety recall, told its lenders in recent weeks that it has seen a substantial impact on its steering business, as the two components are closely linked, said the people, who asked not to be identified discussing confidential information. The people briefed on the impact weren’t provided with specifics. Steering wheels account for almost a fifth of Takata’s sales, while air bags contribute 37 percent.
A decline in orders for Takata’s other businesses would complicate the company’s ability to withstand the costs involved with replacing air bags in more than 40 million vehicles. Safety regulators have said Takata air-bag inflators run an unacceptably high risk of rupturing when they deploy, a defect that’s killed eight and injured about 100 motorists. Takata lowered its full-year profit forecast last month, as it incurred recall losses and automakers led by Honda Motor Co. banned the inflators from future cars.
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