Mazda and Honda drops usage of Takata airbags, share prices declines

Kuala Lumpur: Takata, the largest automotive airbags supplier around the world is getting trapped into more trouble. Many automakers are abstaining themselves from the Japanese airbag supplier resulting which the market shares of the company has plummeted drastically.

A few days ago, Honda announced that it will no longer use Takata’s airbag inflators in it's vehicles and now Mazda has also announced that it will no longer use Takata’s ammonium nitrate-infused inflators in its new cars. Akira Marumoto, executive VP of Mazda said earlier in a statement, “We will not use Takata airbag inflators which contain ammonium nitrate in our new cars.”

Read More: Honda plans to stop the usage of Takata Airbags

Besides Honda and Mazda, Mitsubishi Motors Corporation and Fuji Heavy Industries (Subaru), are also said to be considering to stop the usage of Takata Airbags in their current production line. Subaru is said to be even planning to recall it's cars and replace the Takata airbags with others suppliers. Yasuyuki Yoshinaga, CEO, Fuji Heavy Industries (Subaru) said, it was because Takata was taking too long to supply replacements.

Toyota, on the other hand, clarified that the company will be continuing investigations into Takata airbag inflators. The Toyota executive also added that the company is committed to using “higher quality” components. Whereas, Nissan said they would direct towards the US regulators on actions concerning Takata.

Read More: Takata Airbag Scandal– 7 more brands to join global recall

National Highway Traffic Safety Administration (NHTSA), The US Department of Transport’s has already issued the Japanese Airbag Manufacturer with a hefty penalty of USD$200 million fine (RM860 million) making it the largest ever penalty to be issued. Following which, the share prices of the company has been dropped by 25% as it closed to a six and a half year low. The company has lost nearly USD$330 million (RM1.4 billion) of its market value in just two days. Takata reportedly uses ammonium nitrate as a propellant for its airbags which is the main cause of the difficulties faced by the company. This chemical is said to become unstable when exposed to moisture and heat, which in turn could cause the airbags to explode, this explosion causes the shrewd metal shrapnel to scatter which causes the death of the passenger. Many deaths have been reported so far around the world causing many manufacturers to recall their vehicles and fix the issue.

Image Credits: Jens Meyer / Associated Press