Takata chief executive and president Shigehisa Takada bows as he leaves a news conference in Tokyo.  Shares in the company yesterday slumped 25%, or by their daily limit of ¥300 – to close at a 6-1/2-year low.

Reuters
Tokyo

Shares in Japan’s Takata Corp slumped by a quarter yesterday as more automakers considered no longer using its air bag inflators, casting further doubt on the future of the parts supplier at the centre of a global recall crisis.
A day after Takata’s biggest customer, Honda Motor, said it would stop fitting its cars with the company’s airbag inflators, Mazda Motor Corp said it would drop Takata inflators containing ammonium nitrate from its new cars.
Japanese automakers Mitsubishi Motors Corp and Subaru-maker Fuji Heavy Industries also said they were thinking about switching away from Takata’s inflators.
Airbag parts contributed 38% of Takata’s total sales last year. The company reports its first-half results today.
US regulators say Takata’s inflators use a chemical propellant they suspect causes the air bag to explode with too much force, spraying metal shards into the car. The inflators have been linked to eight deaths, all in Honda cars, and have led to the recall of more than 40mn cars worldwide.
“We will not use Takata airbag inflators which contain ammonium nitrate in our new cars,” Akira Marumoto, Executive Vice President of Mazda, Japan’s fourth-largest automaker, told reporters.
Earlier, Fuji Heavy CEO Yasuyuki Yoshinaga said: “We’re thinking of not using Takata’s inflators for future cars.” He said Subaru may also look elsewhere for the inflators it needs to fix cars under recall as it was taking Takata too long to supply them.
Shares in Takata slumped 25%, or by their daily limit of ¥300 – to close at a 6-1/2-year low. In two days, some $330mn has been wiped from the company’s market value.
The founding Takada family owns about 60% of Takata, while Honda holds 1.2%.
A Toyota Motor Corp executive said on Thursday the company continued to investigate Takata’s airbag inflators and remained committed to using “higher quality” components. He did not elaborate.
On Wednesday, Nissan Motor Co said it would defer to US regulators on actions related to Takata.
Takata said on Wednesday it would pay a $70mn fine imposed by the US National Highway Traffic Safety Administration (NHTSA) in instalments, and phase out – as ordered by NHTSA – the use of potentially volatile ammonium nitrate as a propellant in its air bag inflators.