Takata will no longer fit Honda and Mazda cars with front airbag inflators as these automakers decided to stop buying from this supplier.
Both Honda and Mazda have decided they will not buy airbags from Takata anymore. Honda officials declared it was very concerned by evidence suggesting Takata “misrepresented and manipulated test data for certain airbag inflators”. Thereby, the automotive supplier is losing one of its best clients, Honda. The partnership with Honda meant 10 percent of Takata’s global sales, which accounted for 38 percent of its revenue. The airbags related issues had a negative impact on Honda’s third-quarter results, as 1,9 percent of second-quarter revenue had to be redirected to support the recall costs. From now on, Honda will have to buy more airbags from Takata’s rivals, including Autoliv, TRW Automotive Inc and Daicel Corp. For this company, the bad news does not end with Honda, as Toyota said that it is prepared to take further legal actions.
National Highway Traffic Safety Administration imposed to Takata a record civil penalty of 200 million dollars. NHTSA urged the company to phase out the manufacture and sale of inflators that use phase-stabilized ammonium nitrate propellant, which is believed to be a factor in explosive ruptures that have caused 7 deaths and nearly 100 injuries in the United States. The Agency laid out a schedule for recalling all ammonium nitrate inflators now on the roads unless the company can prove they are safe or can show it has determined why its inflators are prone to rupture. Takata will pay 70 million dollars fine in six instalments through October 2020 and could pay additional 130 million if does not comply. Around 40 million cars have been unofficially recalled worldwide since 2008 over Takata’s faulty airbags.