Toyota and Auto Parts Supplier

Honda Motor Co. Toyota Motor Corp.: Honda Motor Co. and Toyota Motor Corp. remain backers of the auto parts supplier, he said, according to The Japan Times. Takata is still generating cash flow and there no incentive for Honda or Toyota to push it into bankruptcy, Tsuchiya said. The company continues to generate cash from products including seat belts, child seats and steering wheels even as air bag recalls widen, according to Taketoshi Tsuchiya, a senior executive in Mizuho fixed-income group in Tokyo. From the technology perspective, the alternative of having to rely on foreign air bag suppliers is totally unacceptable for the carmakers and the Japanese government, he said. Speculation on Takata recall liability has blown its credit spreads to a record high in December in a market that offers near-zero bond yields. Scandals last year in Japan have created a handful of opportunities for distressed-debt traders as companies including Sharp Corp., Toshiba Corp. and Mitsui OSK Lines Ltd. generate losses. (news.financializer.com). As reported in the news.