TOKYO -- Japan's Takata Corp. said on Thursday it will set aside 96.93 billion yen ($864.4 million) as part of a $1 billion settlement with the U.S. Justice Department over the world's largest ever auto recall.
In a regulatory filing, the supplier also said it would book and additional 3.5 billion yen special loss over recall-related costs in the third quarter. The company's defective airbags have been linked to at least 16 fatalities globally, including 11 in the U.S. Ultimately, some 100 million Takata airbag inflators will need to be recalled.
Takata added that it expects currency related gains of 4.07 billion yen in the April-December period.
Takata has been looking for a sponsor to lead its turnaround, with sources saying Chinese-owned Key Safety Systems had been selected, fanning concern that a court-led restructuring was in the cards.
It will report its third quarter earnings on Friday.