Takata estimates worst-case recall scenario to cost $24 billion

Naturally, its stock fell into the basement after releasing this figure, which is a fair bit higher than an initial estimate.

Replacing hundreds of millions of parts ain't cheap, after all.

Joe Skipper/Reuters/Corbis

In February, a Jefferies Group LLC analyst estimated that Takata would end up spending $17 billion dollars after it was discovered that the parts supplier's airbag inflators were malfunctioning and leading to injuries and fatalities. Now, the company's running its own set of numbers, and the outlook is not very good.

Per Bloomberg, the company estimates that a worst-case scenario, in which Takata must recall every airbag inflator (some 287 million parts), could cost as much as $24 billion dollars. That assumes that Takata eats the entire cost of the recall, which could also be split with automakers.

Naturally, this isn't great news for a company that doesn't have that much to spend -- Bloomberg notes that Takata's worst-case estimate is four times higher than its projected revenue for the fiscal year ending this month. As a result, shares of the company dropped 20 percent after the news broke. Automakers known for using Takata inflators, like Honda, also fell.

In that same Jefferies report from February, analysts estimated that Takata has spent upwards of $5 billion on recall-related expenses already. Takata did not immediately return a request for comment.

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