Toyota stays with Takata

Toyota stays with Takata image

Toyota Motor announced that it will not disclaim Takata as its airbags supplier, but will not use their deadly inflators anymore.

Volkswagen scandal is on front pages everywhere, but lately Takata has been following closely. Many automakers have already dropped out the collaboration with the Japanese supplier, by Toyota said it won’t abandon them. The statement, made today by the president of the carmaker Akio Toyoda, is slightly helping Takata’s shares not falling that deep anymore. Nevertheless, Toyoda wanted to point out the fact that Toyota would no longer use Takata’s inflators that contain phase-stabilized ammonium nitrate propellant, which is believed to be a factor in several deadly explosive ruptures. However, Toyota will take into consideration other airbags from the supplier as long as they are safe. “Even if they’re made by Takata, we intend to take an unbiased approach (for other inflators) as long as we can confirm their safety”, stated the president Toyoda.

As a consequence of this statement, Takata’s shares briefly increased, stopping a 15 percent fall earlier in the day to their lowest since March 2009. The stock has lost nearly 40 percent over the past three days as automakers dropped out Takata’s inflators. A hard hit for the supplier was losing its partnership with its biggest client Honda, which has a small stake in Takata. Mazda is also quitting using those airbags, as Fuji Heavy Industries (Subaru) and Mitsubishi Motors said they were considering doing the same.

Via Reuters

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