NINGBO Joyson Electronic Corp., a Shanghai-listed auto supplier, is looking at investing in Japan’s Takata Corp. that has been searching for financial backers to help it face mounting recall costs over potentially deadly air bags.

    The deepening recall crisis has sent Takata’s shares plummeting, making it an attractive acquisition target for investors who believe that the Japanese firm will continue to survive as the auto industry has found it difficult to procure sufficient air bag replacements elsewhere.

    KKR & Co. and other potential investors are also in bailout talks with Takata, sources said two weeks ago.

    Bloomberg reported Friday that Bain Capital and PAG Asia Capital were also interested in investing although discussions were at an early stage.

    Ningbo Joyson’s interest comes as it closed a US$920 million deal Thursday to acquire Michigan-based Key Safety Systems, the Chinese firm’s first foray into air bags and seatbelts, important sectors for Takata.

    Key Safety chief executive Jason Luo said his company and Ningbo Joyson were discussing a potential investment with Lazard, the investment bank Takata has hired to lead a financial restructuring with the aim of resolving its recall costs.

    Ningbo Joyson spokesman Chen Yang said the firm was not yet considering an acquisition.

    “We don’t say it’s possible, also we don’t say it’s impossible, depends on the situation with Takata,” he said, adding that the company has not had any contact yet with the Japanese firm.

    More than 100 million vehicles worldwide have been recalled over faulty Takata airbag inflators that are linked to 13 deaths and more than 100 injuries, with new recalls being announced on a near weekly basis.

    If Takata was found to be solely responsible for the problem, it could face a recall bill of over US$10 billion, based on a rough calculation that each replacement kit costs around US$100.

    Ningbo Joyson produces a wide range of components from electronic control units to rear-view mirrors. The firm has been expanding in the components sector since 2009 and has bought a plastics firm in Shanghai and German automotive electronics supplier Preh. (SD-Agencies)