Takata May Go Under As More Automakers Back Away From Supplier

Aaron Cole
by Aaron Cole

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.


Aaron Cole
Aaron Cole

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  • Honda_lawn_art Honda_lawn_art on Nov 06, 2015

    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.

    • See 3 previous
    • Bikegoesbaa Bikegoesbaa on Nov 09, 2015

      I'm genuinely confused as to why anybody works in the automotive supply business. Seems like it's incredibly frustrating and stressful with not much in the way of rewards to balance that out. I went to a car school for engineering, saw what all the guys working at auto suppliers were doing, and then very explicitly decided that I wanted nothing to do with that and decamped for another industry. With 15 years of hindsight I am positive that was the correct choice. Cars are a great hobby but unless you're doing really interesting/awesome stuff there are much better ways to make a living. I especially don't get the tech guys who complain about the horrors of the auto industry. Just leave! There are lots of opportunities elsewhere, with employers who treat their people well and have interesting projects to work on.

  • Gasser Gasser on Nov 06, 2015

    Meanwhile, how do I get a new airbag for my car? Also who, if anyone, is on the hook to replace it?

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    • JohnTaurus JohnTaurus on Nov 08, 2015

      That's what Im wondering! Who makes the replacements? What do I do, take the car to Honda asap? Ive been looking at used Accords for $3000 and under for my widowed cousin. Im going to have to check up on them when we get ready to buy. We live in a very high humidity area (50 some odd miles from the Gulf Coast). We are selling her 2wd 2003 Expedition Eddie Bauer first (we put it at $3500 obo). Most likely will be a 1998-2002 Accord, I-4, prefer EX, likely a 4-door but she rarely has her two grand kids so she might consider a coupe. She had a 98 EX sedan before, had well over 300k when she finally sold it. She really liked it, she named it Precious lol.

  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
  • Carson D The UAW has succeeded in organizing a US VW plant before. There's a reason they don't teach history in the schools any longer. People wouldn't make the same mistakes.
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