Mazda Joins Honda in Dumping Takata as Airbag Supplier

Mazda Motor Corp. says it is joining Honda Motor Corp. in halting its use of Takata Corp. airbag inflators that use ammonium nitrate as a propellant.

Mazda’s decision comes four days after Takata agreed to U.S. Environmental Protection Agency sanctions to phase out the chemical by 2018. A dozen carmakers are recalling some 40 million Takata inflators that use the material, which can degrade and cause the inflator to explode when activated in a crash.

Reuters notes that Mitsubishi and Subaru also say they may drop the Takata devices.

Inflators and other airbag system components accounted for 38% of Takata’s sales in 2014, according to the news service. Analysts say the company’s future is at risk after EPA fined the company $70 million for misleading its customers and the agency for years about problems with the inflators. The devices have been blamed for eight fatalities, all occurring in Honda vehicles.

CEO Shigehisa Takada tells reporters the company remains convinced ammonium nitrate is a safe propellant. But he acknowledges there is “risk” to the company’s survival. He says Takata is “considering some plans to survive” but offered no details.