The news sent its shares plummeting by 20% to a new low of all-time. The extraction of all inflators in airbags Takata has manufactured that contain ammonium nitrate would affect more than 287.4 million inflators, said someone close to the situation.
A spokesperson for Takata would not comment when asked about the amount saying the company did not disclose its production figures for individual products.
The figure of $24 billion exceeds by a great deal the estimates in the industry that Takata could be facing of over $3.5 billion if found responsible for the defective inflators that are recalled to date. It dwarfs the current assets of the company of only $1.3 billion as of the end of 2015.
Shares at Takata plunged to their daily limit that gave the company a $302 million market value. Over 50 million of its airbags across the globe have already been recalled to replace the inflators supplied by Takata. The inflators can explode with such a great force that they spray metal shards throughout the inside of the vehicle.
Around the world, 10 deaths to date have been tied to this issue, with most taking place in the U.S.
Up to 120 million airbag inflators from Takata that contain ammonium nitrate already are installed in vehicles on roads in the U.S. alone.
Last month it was reported that auto safety regulators in the U.S. were examining whether more inflators of the company would be recalled due to them endangering drivers.
Takata has been fined already $70 million by transport authorities in the U.S. The company is also facing a number of class action suits across the U.S. where most of the injuries related to airbags occurred.
A number of investigations by transportation authorities, automakers and Takata are underway at this time trying to determine what the root cause of the defect in the inflator is and automakers said they would talk about how to split the cost of recalls with the airbag maker.