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    BlackRock-backed fintech Trustly says IPO still at least one year out even as profits jump 51%

    In an exclusive interview with CNBC, Johan Tjarnberg, CEO of Trustly, said that his firm still needs time to prove the value of its open banking technology to investors before going public.
    Trustly is holding out on an IPO even after reporting a strong set of financials, with results shared exclusively with CNBC showing the firm reported revenues of $265 million in 2023.
    Trustly increased operating profit by 51% in full-year 2023, with adjusted EBITDA climbing to $51 million from $33 million in 2022.

    Trustly CEO Johan Tjarnberg.

    The boss of Swedish financial technology startup Trustly says an initial public offering for the company is still a year or two away from happening, even after a 51% jump in operating profit.
    In an exclusive interview with CNBC, Johan Tjarnberg, CEO of Trustly, said that his firm still needs time to prove the value of its open banking technology to investors before going public.

    “We need another year or two to really demonstrate to the market that open banking is happening happening, it’s here,” Tjarnberg told CNBC.
    “For me, there is so much we want to demonstrate to the market in terms of user adoption, merchant adoption. We still need some time to execute on our existing playbook.”
    Trustly is holding out on an IPO even after reporting a strong set of financials. Results shared exclusively with CNBC show the firm reported revenues of $265 million in its 2023 full year.
    Growth accelerated significantly in the second half of the year, Trustly said, climbing 27% compared with the same period in 2022. That was as transaction volumes spiked 48% over the same period.
    Tjarnberg told CNBC that the company’s performance in 2023 was heavily driven by the growth at its U.S. business. Trustly merged with American rival PayWithMyBank in 2020.

    “We invested a lot into the U.S. market,” Tjarnberg said. “We were roughly 20 people there four years ago; we now have 500 supporting the U.S. market.”
    Tjarnberg said that, in the first quarter of this year, Trustly saw heightened growth in areas like utilities, retail, and travel, with 22% of volumes coming from those core verticals, up 44% over 12 months.

    Chipping away at Visa, Mastercard?

    Trustly increased operating profit by 51% in full-year 2023, with adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) climbing to $51 million from $33 million in 2022.
    That was as overall transaction value processed during 2023 climbed by 79%, to $58 billion.
    Trustly helps companies integrate the ability to accept payments via open banking technology.
    This tech lets consumers make payments directly to a merchant’s bank account without the need for an intermediary such as a card issuer.
    It provides an alternative to incumbent credit card programs such as Mastercard and Visa, which charge merchants high fees for transactions.

    In the U.S., Tjarnberg said, Trustly is seeing heightened demand from merchants “trying to take down costs,” as high card processing fees have made them more price-conscious.
    “There is no secret that our objectives and ambition is to bring a good alternative to other payment methods, including cards,” he told CNBC.
    Open banking is a trend which has gained significant momentum, particularly across Europe.
    That’s thanks to the introduction of regulations which require banks to open their clients’ account data and payment functionalities to third-party firms.
    It has paved the way for new entrants into finance including fintechs, startups and tech companies. Founded in 2008, Sweden’s Trustly competes with the likes of GoCardless, TrueLayer, Volt, Bud, and Yapily.

    Future product plans

    Trustly expects to launch a feature that allows its merchants to set up recurring payments for customers. That will be targeted at things like telecom packages and subscription-based music streaming services.
    Tjarnberg said Trustly is “bullish” on the mobile space, particularly in the U.S. after having seen early success in mobile billing partnerships with the likes of AT&T and T-Mobile.
    Trustly is used by more than 9,000 merchants worldwide including Facebook, Alibaba, PayPal, eBay, AT&T, Unicef, Dell, Lyft, DraftKings, Wise, and eToro.
    Trustly is majority-owned by venture capital firm Nordic Capital, which owns a 51.1% stake in the business. Alfven & Didrikson is its second-biggest backer, with a 11.1% stake, while BlackRock holds an 8.9% stake.
    Aberdeen Standard Investments and Neuberger Berman own 0.7% and 0.9% stakes in Trustly, respectively, while others including the Trustly management and employees own 27.4%. More

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    UBS overhauls wealth management leadership in wider board shake-up

    UBS on Thursday announced a shake-up of its executive board in the latest phase of a radical overhaul of the Swiss banking giant, following its takeover of fallen rival Credit Suisse.
    A newly split global wealth management division sees the bank double down across the two geographies as part of its “sustainable, strategic growth” strategy.
    The new appointments provide an important signal on the future direction of the bank as it tees up a replacement for outgoing CEO Sergio Ermotti, who is expected to step down by early 2027.

    The three keys USB logo is seen outside the London office of Swiss bank UBS in central London, on March 20, 2023.
    Daniel Leal | AFP | Getty Images

    LONDON — UBS on Thursday announced a shake-up of its executive board in the latest phase of a radical overhaul of the Swiss banking giant, following its takeover of fallen rival Credit Suisse.
    A newly split global wealth management division, led by co-presidents Iqbal Khan in Asia-Pacific and Rob Karofsky in the U.S., sees the bank double down across the two geographies as part of what it has dubbed its “sustainable, strategic growth” strategy.

    It marks the first time a divisional UBS president has been based in Asia-Pacific, the bank said.
    The new appointments provide an important signal on the future direction of the bank, as it tees up a replacement for outgoing CEO Sergio Ermotti, who is expected to step down by early 2027.
    “The appointments to the Group Executive Board we are announcing today will allow us to continue to progress on our integration journey and realize the expected synergies and efficiencies, while putting even more emphasis on our long-term priorities and growth prospects, particularly in the Americas and Asia-Pacific,” Ermotti said in a statement.
    George Athanasopoulos and Marco Valla also join the executive board as co-presidents of the investment bank, alongside Damian Vogel, incoming global chief risk officer.
    The trio replace outgoing board members Credit Suisse CEO Ulrich Korner, UBS Asia-Pacific President Edmund Koh, and UBS Americas Regional President Naureen Hassan.

    The reshuffle comes as part of a wider overhaul of the bank, following its emergency rescue last year of Credit Suisse — a shotgun marriage brokered by Swiss authorities to prevent the then 167-year-old institution’s collapse and protect the Swiss economy.
    The FT reported Monday that UBS had ruled out an outsider as successor to Ermotti, who returned last year to steer the bank through its mammoth takeover.
    The bank is said to be choosing from a shortlist of three internal candidates to assume the CEO role when Ermotti steps down in around three years’ time. A name could be announced as early as next year, sources told the FT.
    UBS did not immediately respond to CNBC’s request for comment on the reports. More

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    Nelson Peltz sells entire Disney stake weeks after losing proxy battle

    Activist investor Nelson Peltz has sold his entire stake in Disney, according to a person familiar with the matter.
    In early April, Peltz’s Trian lost a proxy battle at Disney as shareholders reelected the company’s full slate of board nominees.

    Activist investor Nelson Peltz has sold his entire stake in Disney, a person familiar with the matter tells CNBC.
    Peltz sold all of his Disney stock at roughly $120 a share, the person said, making about $1 billion on the position. The stock currently trades for about $100 per share.

    The exit comes weeks after Peltz’s Trian Partners lost a proxy battle at Disney in early April as shareholders reelected the company’s full slate of board nominees. Peltz had been seeking to elect himself and former Disney finance chief Jay Rasulo to the company’s board.
    Peltz had long taken issue with Disney governance. In October, CNBC reported he upped his stake in the company to about 30 million shares and had reignited his proxy campaign, taking particular aim at Disney’s streaming strategy and a failed succession plan for CEO Bob Iger.
    “We are proud of the impact we have had in refocusing this Company on value creation and good governance,” Trian said in a statement following the April shareholder vote.
    Shares of Disney are up about 11% so far this year, slightly edging out the S&P 500.
    Disney didn’t immediately return a request for comment.

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    American Eagle profit soars, but sales grow slower than expected

    American Eagle is making gains in improving profit and saw its fiscal first-quarter net income nearly quadruple compared to the year-earlier period.
    Still, it has a cautious outlook for the second half of the year as it plans to lap tougher comparisons and contend with “noise” around the upcoming election, finance chief Mike Mathias told CNBC.
    American Eagle President Jennifer Foyle said the company is revamping its product assortment and reducing the number of items it sells.

    An American Eagle Outfitters store in New York, US, on Monday, May 27, 2024. American Eagle Outfitters Inc. is scheduled to release earnings figures on May 29. 
    Stephanie Keith | Bloomberg | Getty Images

    American Eagle on Wednesday said it’s making gains in boosting profitability as it works to improve its product assortment and tweak operations. Still, its fiscal first-quarter sales came in weaker than Wall Street expected. 
    Nevertheless, revenue gained 6% year over year and marked a record for the first quarter, the company said in a news release. 

    Shares fell about 5% in extended trading on Wednesday.
    Here’s how the apparel company did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: 34 cents vs. 28 cents expected
    Revenue: $1.14 billion vs. $1.15 billion expected

    The company’s reported net income for the three-month period that ended May 4 nearly quadrupled compared to the year-ago period. American Eagle posted net income of $67.8 million, or 34 cents per share, compared with $18.5 million, or 9 cents per share, a year earlier. 
    Sales rose to $1.14 billion from $1.08 billion a year earlier.
    American Eagle said it’s continuing to expect operating income in the range of $445 million to $465 million, reflecting revenue growth of up 2% to 4% compared to the prior year. That’s slightly below estimates of up 3.4%, according to LSEG.

    Finance Chief Mike Mathias told CNBC that American Eagle is maintaining a “cautious” view for the back half of the year as it prepares to lap some tougher comparisons, awaits interest rate decisions from the Federal Reserve and prepares for “noise” around the upcoming presidential election. 
    He added the company is waiting to see how the back-to-school shopping season goes to get a better idea on how the rest of the year plays out. 
    For the current quarter, American Eagle expects operating income in the range of $95 million to $100 million, reflecting revenue growth of high single digits, which is in line with the 7.4% uptick that analysts had expected, according to LSEG. 
    The apparel company, which runs its namesake banner and intimates brand Aerie, is in the midst of a new strategy to boost growth. It’s looking to grow sales by 3% to 5% each year over the next three years and get its operating margin to about 10%.
    Some of its efforts are beginning to bear fruit. During the fiscal first quarter, American Eagle grew its gross margin by 2.4 percentage points. Mathias said that’s the company’s second highest rate since 2008 in the company’s earning call. The gains were driven by better inventory management, lower product and transportation costs and leverage on expenses including rent, delivery and distribution and warehousing. 
    “Key drivers of growth included women’s overall, especially in tops which as I reviewed is a major priority for us. I’ll also highlight strength in dresses, skirts and jeans, in these areas we are seeing a positive customer response as we look to capture the social casual dressing occasion and a wider age demo. Both of these are key growth opportunities within our long term plan,” American Eagle’s president and executive creative director Jennifer Foyle added in the earnings call.
    American Eagle’s strategy has also focused on revamping its product assortment, removing items that weren’t working for its customers and drilling down on the categories that are resonating. 
    Foyle told CNBC that the company was just “over-skued” — meaning it had too many different individual products, often referred to in the industry as SKUs, for consumers to choose from. 
    “We knew we could do more with less,” said Foyle. “So deeper investments in our bottoms but less SKUs so that we are servicing our customer on the fits that they’re demanding from us.” 
    “We’ve really taken that category back, we’re winning,” Foyle said of the company’s denim business. “Definitely in women’s, some early earnings in men’s, as I mentioned you will see more of that earnings in Q3. We remain very nimble in that category but we’re definitely more balanced than we had been in the past.”
    The company has also been working to revamp its stores and introduce new formats. It recently implemented a new store design for American Eagle, which is “outpacing the balance of the chain,” said Foyle. 
    “We’re excited about remodeling our stores with a new feeling for the brand that I think expresses exactly what we’ve been up to,” she said. “The customer, obviously is loving what they see in that store design based on the results.”

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    American shares tumble 13% after sales strategy backfires; carrier cuts growth

    American Airlines will slash its capacity growth in the second half of the year and consider a host of other changes to its operations, CEO Robert Isom said.
    The carrier cut its revenue and profit forecast and is parting ways with Chief Commercial Officer Vasu Raja.
    Pressure has been mounting on American’s leadership team after more upbeat results from rivals Delta and United.

    An American Airlines’ Embraer E175LR (front), an American Airlines’ Boeing 737 (C) and an American Airlines’ Boeing 737 are seen parked at LaGuardia Airport in Queens, New York on May 24, 2024. 
    Charly Triballeau | AFP | Getty Images

    American Airlines will slash its capacity growth in the second half of the year and consider a host of other changes to a sales strategy that backfired, CEO Robert Isom said Wednesday. The comments come a day after the carrier cut its revenue and profit forecast and said it is parting ways with its chief commercial officer, Vasu Raja.
    American will grow capacity about 3.5% in the second half of the year compared with the year earlier, down from roughly 8% year-over-year growth in the first six months of 2024.

    The company’s shares tumbled more than 13% on Wednesday as investors weighed the airline’s missteps as the peak travel season gets underway, with some analysts questioning how American can capitalize on what rivals expect to be a record summer. It was the stock’s biggest percentage drop in nearly four years, during the travel plunge early in the Covid-19 pandemic.
    United Airlines shares rose more than 2% and Delta’s fell less than 1%.
    Isom said American is weighing changes to a plan Raja led to drive direct bookings at the airline in lieu of third-party sites and travel agencies, a strategy that included gutting the airline’s sales department.
    The changes angered travel agencies who weren’t able to access some of the carrier’s fares as before, making it harder for them to sell tickets on American flights.
    The chief commercial officer will leave the company next month.

    Stock chart icon

    An American Airlines stock chart shows how the company’s shares have tumbled in the past year.

    “We’ve used a lot of sticks. We’ve got to put some more carrots in place and make sure that our product is available wherever customers want to buy it,” Isom said at the Bernstein Strategic Decisions conference on Wednesday.
    American in February said it would limit some travel agency bookings from being eligible to earn AAdvantage frequent flyer miles. Isom said Wednesday that the airline would reverse that decision.
    “That’s off,” Isom said. “We’re not doing that because it would create confusion and disruption for our end customer.”
    Isom called Raja, who has been at American for 20 years “an innovator, a disruptor,” adding that “sometimes we need a reset.” Raja didn’t immediately comment.

    Corporate travel troubles

    Raja said last month American’s corporate booking growth was coming in behind big rivals Delta and United.
    Corporate bookings are particularly lucrative for airlines especially when those travelers book at the last minute when fares are at their highest — so called close-in bookings. Airlines had struggled during the pandemic and shortly afterward when business travel was slow to return, but carriers have seen improvement lately.
    “The weakness that you’ve seen in American is, I do believe, something that speaks to close-in bookings, the highest premium customers that, unfortunately, we haven’t made ourselves as available and easy to work with as we can,” Isom said.
    On an earnings call last month, Raja said American’s corporate bookings were up mid-to-high single-digit percentage points in the first quarter compared with increases of around 14% touted by Delta and United.
    “A significant miss driven in part by close in bookings puts AAL’s ability to reap the full value of a robust summer flying season in greater doubt,” Bernstein airline analyst David Vernon said in a note.

    Revenue shortfalls

    After the market closed Tuesday, American said its unit revenues could fall as much as 6% in the second quarter from a year earlier, down from its forecast last month of a no-more-than-3% decline. Airlines make the bulk of their money during the second and third quarters, but some areas have fared better than others.
    Isom admitted Wednesday that the company has logged softer bookings than it expected and noted a supply and demand “imbalance” that has prompted carriers to discount tickets. He said industry capacity should come down in the second half of the year, while it slows its own growth.
    United, minutes after American’s forecast adjustment Tuesday, reiterated its second-quarter earnings estimates, though it didn’t provide a revenue outlook.
    “American’s diminished guide speaks far more to its flawed initial forecast than any broad-based shift in passenger demand,” JPMorgan airline analyst Jamie Baker said in a note Wednesday, adding that United’s reiterated forecast was an encouraging sign for Delta.
    American has also been prioritizing Sun Belt cities and its large hubs in Texas and North Carolina over coastal markets.
    The Transportation Security Administration screened the most people ever over Memorial Day weekend, and executives from United and Delta have predicted a record summer, with very strong trans-Atlantic bookings.

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    Stocks making the biggest moves after hours: Salesforce, UiPath, Capri, Pure Storage and more

    The logo for Salesforce is displayed on the Salesforce Tower in New York City on March 7, 2019.
    Brendan Mcdermid | Reuters

    Check out the companies making headlines in extended trading:
    Salesforce — Shares plunged more than 14% after first-quarter revenue of $9.13 billion missed consensus estimates of $9.17 billion, according to LSEG. Adjusted earnings of $2.44 per share beat a consensus estimate of $2.38, but current-quarter guidance fell below estimates on both top and bottom lines. 

    UiPath — The software company tanked 30% after saying its CEO Rob Enslin will resign, effective June 1. He will also be stepping down from the board of directors. Daniel Dines, former CEO of UiPath and current chief innovation officer, will return to the helm.
    HP Inc. — The manufacturer of personal computers rose 3%. HP posted adjusted earnings of 82 cents per share on revenue of $12.8 billion in its fiscal second quarter, above analysts’ estimates of 81 cents a share and revenue of $12.6 billion, according to LSEG.
    Pure Storage — The software company rose 1% on better-than-expected fiscal first-quarter earnings. Pure Storage posted 32 cents a share in adjusted earnings on $693.5 million in revenue. Analysts surveyed by LSEG had forecast 21 cents a share on revenue of $681 million. 
    Okta — The digital identity verification company added nearly 2% after top- and bottom-line numbers topped analysts’ estimates in the first quarter. Okta’s second-quarter revenue guidance range of $631 million to $633 million also beat the consensus estimate for $616 million, according to LSEG data. 
    Capri — The Versace and Jimmy Choo fashion group shed 3% after fiscal fourth-quarter results missed analysts’ estimates. Capri reported adjusted earnings of 42 cents a share, while analysts had estimated 65 cents, according to LSEG. Revenue of $1.22 billion also missed forecasts of $1.30 billion. Management cited softening demand for luxury goods and a slowdown in Asia. 

    C3.ai — Shares of the artificial intelligence software company climbed more than 8% after reporting quarterly results above estimates. C3.ai lost an adjusted 11 cents per share on $86.6 million in revenue. Consensus estimates had called for a loss of 30 cents on revenue of $84.4 million, according to LSEG. Full-year revenue forecasts also beat estimates. 
    American Eagle Outfitters — Shares pulled back nearly 6% after the clothing retailer’s first-quarter revenue missed estimates and it issued weak forward guidance. American Eagle Outfitters reported $1.14 billion in revenue, lower than the average analyst estimate of $1.15 billion, according to LSEG data. Earnings beat estimates, but full-year revenue guidance was in a range of 2% to 4%, compared to forecasts for 3.4%. 
    Agilent Technologies — The life sciences company tumbled 14% after lowering full-year earnings and revenue guidance. Agilent guided for earnings per share between $5.15 and $5.25 versus previous guidance of $5.44 to $5.55, according to FactSet. Revenue guidance was also pulled back to between $6.42 billion and $6.50 billion, compared to prior guidance in a range of $6.71 billion to $6.81 billion. Meanwhile, fiscal second-quarter earnings topped estimates, while revenue narrowly fell below the consensus estimate.
    Nutanix — The cloud computing company tumbled 14% after issuing its fiscal fourth-quarter revenue forecast of $530 million to $540 million that missed analysts’ estimates of $546 million. Full-year revenue guidance of $2.13 billion to $2.14 billion compared to prior forecasts of $2.12 billion to $2.15 billion, and consensus estimates of $2.14 billion, per FactSet.
    — CNBC’s Darla Mercado contributed reporting. More

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    McDonald’s exec says average menu item costs 40% more than in 2019

    A top McDonald’s executive is weighing in on claims that the company has jacked up its prices by more than 100%.
    Joe Erlinger, president of McDonald’s USA, said in an open letter the average price of a Big Mac meal today is up 27% from 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.
    McDonald’s has not been immune to long-awaited consumer pullbacks at restaurants.
    The fast-food giant will soon offer a $5 value meal for about a month.

    A sign is posted in front of a McDonald’s restaurant in San Leandro, California, Feb. 6, 2024.
    Justin Sullivan | Getty Images

    A top McDonald’s executive is weighing in on claims that the company has jacked up its prices.
    Joe Erlinger, president of McDonald’s USA, said in an open letter Wednesday that the average price of McDonald’s menu items is up around 40% since 2019. The breakdown comes in response to claims on social media from House Republicans, among others, that the fast-food company upped prices by more than 100%. 

    “Americans across the country are making tough calls about where to spend their hard-earned money,” Erlinger said. “And while we’ve been working hard to make sure our fans have great reasons to visit us, it’s clear that we — together with our franchisees — must remain laser-focused on value and affordability.”
    Erlinger said the average price of a Big Mac meal today is $9.29, up 27% from $7.29 in 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.
    Erlinger added the cost increases are tied to similar increases in input costs such as crew salaries and cost of goods.
    “For a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available,” Erlinger said.

    Consumer prices have increased 3.4% over the past year, according to the latest data from the Bureau of Labor Statistics. In response to persistently steeper costs, some consumers are pulling back across the restaurant industry, a trend that has not spared the fast-food giant.

    McDonald’s recently reported same-store sales below expectations in its first-quarter earnings report. The company will also soon offer a $5 value meal for roughly a month, beginning June 25.
    That offering will include a McChicken or McDouble, four-piece chicken nuggets, fries and a drink, CNBC previously reported.
    Analysts at BTIG characterized the promotion as being more about value perception than a profit driver.
    “In our view, this new deal is more about value perception, seeking to change the media narrative around McDonald’s recent price hikes to refocus around a deep(er) value offering. We believe the new one-month meal deal could actually hurt sales (check decline) and margins, but help reinstate McDonald’s as a value leader in the industry,” the analysts said in an investor note.
    An independent advocacy group of McDonald’s franchisees is pushing to make the discounted offering sustainable for operators, saying it will require greater investment from the company if it sticks around menus beyond the initial monthlong run.
    “There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonalds,” the board of the National Owners Association wrote in a letter to membership that was viewed by CNBC.
    — CNBC’s Kate Rogers contributed to this report.

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    Nissan issues ‘do not drive’ alert for nearly 84,000 older models with recalled airbags

    Nissan warned owners of nearly 84,000 older vehicles to stop driving them, according to the National Highway Traffic Safety Administration.
    The warning covers certain 2002-2006 Nissan Sentra, 2002-2004 Nissan Pathfinder and 2002-2003 Infiniti QX4 vehicles that may have Takata airbags that were recalled in 2020.
    The NHTSA said the agency has confirmed that a defective Takada airbag that exploded killed 27 people and allegedly injured at least 400 others in the U.S.

    A Nissan Sentra sits on the lot of a dealership in Evanston, Illinois, on Nov. 12, 2010.
    Scott Olson | Getty Images

    Nissan has warned owners of older vehicles to drop driving cars equipped with recalled, unrepaired Takata airbags the National Highway Traffic Safety Administration announced Wednesday.
    The NHTSA said the Japanese carmaker’s “Do Not Drive” alert applies to 83,920 cars. The affected cars include 2002-2006 Nissan Sentra, 2002-2004 Nissan Pathfinder and 2002-2003 Infiniti QX4 vehicles that may have Takata airbags that were recalled in 2020.

    Nissan’s stock closed Wednesday’s session down around 3% following the warning.
    “NHTSA is urging all vehicle owners to immediately check to see if their vehicle has an open Takata airbag recall,” the NHTSA said in a statement. “If you have one of these vehicles, do not drive it until the repair is completed and the defective airbag is replaced.”

    Read more CNBC auto news

    Nissan and Infiniti will offer affected owners free towing and mobile repair, as well as loaner cars in select locations. Infiniti is a division of Nissan.
    “Due to the age of the vehicles equipped with defective Takata airbag inflators, there is an increased risk the inflator could explode during an airbag deployment, propelling sharp metal fragments which can cause serious injury or death,” a Nissan spokesperson told CNBC in a statement.
    According to the NHTSA, 27 people in the United States were confirmed to have been killed by a defective Takata airbag that exploded. At least 400 others have allegedly sustained injuries, according to the NHTSA.

    At least 67 million Takata airbag inflators have been recalled in the country, and more than 100 million have been recalled worldwide, making it one of the largest auto safety callbacks in history.
    In 2017, Takata filed for bankruptcy protection in Japan and the U.S. after agreeing to pay $1 billion in criminal penalties tied to its allegedly fraudulent conduct in the sales of its defective airbag inflators.

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