Takata May Go Under As More Automakers Back Away From Supplier
Toyota said Thursday that the world’s largest automaker would no longer use the beleaguered company’s airbags, joining Honda, Mazda and others, putting in doubt that supplier’s viability, Bloomberg reported (via Fortune).
Reuters (via Automotive News) reported that the automotive supplier, who was hit with a $70 million fine from the National Highway Traffic Safety Administration earlier this week, is preparing for the worst.
“We are considering some plans to survive, but it is not at the stage I can talk about yet,” CEO Shigehisa Takada said Wednesday, according to Reuters.
The company’s use of a propellant for its airbags that would explode with too much force, spraying metal into the passenger cabin, has been blamed for eight deaths and nearly 100 injuries. The company signed an agreement with NHTSA this week that acknowledged that the company was slow to react and covered up its faulty airbags.
Honda said it would not use the company’s airbags in its cars for “the foreseeable future.
“We have become aware of evidence that suggests that Takata misrepresented and manipulated test data for certain airbag inflators,” Honda said, according to Reuters. “Honda expects its suppliers to act with integrity at all times and we are deeply troubled by this apparent behavior by one of our suppliers.”
Shares for Takata were down 40 percent after the company signed the consent order with NHTSA.
Airbag sales were roughly 38 percent of the company’s yearly revenue, according to Bloomberg.
When regulators announced Takata’s fine, NHTSA officials said the fine could grow to $200 million if the supplier doesn’t comply with all aspects of the order, including appointing an independent monitor that would oversee the company’s compliance for five years.
NHTSA said it would speed up the recalls for cars equipped with potentially dangerous Takata airbags. Up to 19 million cars from 12 different automakers — 23 million inflators in total — could be affected.
The most dangerous airbags would be replaced by June 2016 and all airbags could be recalled by 2019.
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- Kjhkjlhkjhkljh kljhjkhjklhkjh A prelude is a bad idea. There is already Acura with all the weird sport trims. This will not make back it's R&D money.
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- Redapple2 Love the wheels
- Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
- Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
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Takata's being portrayed as an evil entity, but in automotive supply; if you don't get the contracts, you're out of business, so we're manufacturing devices designed to save lives to a price point. There was a company in Aurora, CO called OEA that made airbags and they went out of business because of some non-lucrative contracts. Some of that business assuredly went to Takata. Now Takata is losing business and it's going to whoever else, but the real problem isn't fixed; automakers aren't paying anyone enough to make the right airbag, and only after every supplier in the world has a tarnished record will this be news.
Meanwhile, how do I get a new airbag for my car? Also who, if anyone, is on the hook to replace it?