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Shares Of Japan Auto Parts Maker Takata Are Sinking After Damaging New York Times Article

Matt Johnston,ReutersNov 7, 2014, 11:28 IST

Shares in Takata Corp fell more than 8% as of 1 A.M. EST on Friday, reversing earlier gains after the New York Times reported that the Japanese auto parts maker had concealed the risks of potentially defective air bags following an accident in 2004.

The New York Times reported Takata had secretly conducted tests on 50 airbags retrieved from scrap yards after the accident in Alabama, with results showing cracks in steel inflators in two of the air bags.

Citing two former Takata employees, the Times said Takata executives ordered the lab technicians to delete the test data instead of alerting federal safety regulators to the possible danger.

Takata could not immediately be reached for comment.