Toyota joins Honda in ditching Takata airbag inflators

Supplier hires firm to raise funds, report says

Supplier hires firm to raise funds, report says

TOKYO (Bloomberg) — Toyota Motor Corp. joined Honda Motor Co. in saying it won’t use key components made by Takata Corp., as more automakers come out to distance themselves from the air-bag supplier whose defective devices are behind the biggest ever automotive safety recall.

“The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota,” Toyota President Akio Toyoda said at a briefing in Tokyo Friday. “What’s most important above anything else is the safety and peace of mind of customers.”

Takata fell 6.2 percent in Tokyo trading, resulting in a 39 percent three-day decline, the most on record. The company posted a 8.66 billion yen ($71 million) loss in the second quarter after the trading close, and slashed its full-year net income forecast to 5 billion yen from 20 billion yen.

Honda and Toyota are the two companies with the most number of vehicles recalled because of Takata’s airbags, which have been found to rupture with excessive force and are linked to more than a hundred injuries and eight deaths.

Mazda Motor Corp. also said on Thursday its new cars will no longer use Takata airbag inflators, while Subaru and Mitsubishi Motors Corp. are considering the same. The comments follow Honda’s decision to stop using Takata inflators in new models and its accusation that the company manipulated test data. The Nikkei reported Friday that Nissan Motor Co. plans not to use Takata’s airbag inflators in new models.

Unusual repudiation

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