Toyota Drops Takata As Airbag Inflator Supplier

Toyota Motor Co. is the latest carmaker to declare it will no longer use Takata Corp. airbag inflators filled with ammonium nitrate.

The company joins Honda and Mazda, who made similar statements earlier this week. Mitsubishi and Subaru say they are considering similar moves. Other carmakers have been shifting to other suppliers this year.

Takata’s rivals use more stable chemicals as propellants in airbag inflators. Takata acknowledges that ammonium nitrate can deteriorate when exposed to moisture, but it has not yet pinpointed the root cause of explosions that have killed eight people and prompted 12 carmakers to recall about 40 million vehicles to replace the devices.

Several manufacturers say they would consider buying Takata inflators again if the company switched to another propellant.

In the meantime, Takata’s share price has plunged about 40% so far this month after the U.S. National Highway Traffic Safety Administration fined the company $70 million for misleading customers and safety agencies about the problem.

NHTSA has threatened to fine Takata as much as $130 million more if it turns up more evidence of wrongdoing. The agency also ordered the company to stop making ammonium nitrate inflators by the end of 2018. And it said it might launch new recalls of the current design unless the company can prove it is safe.