Toyoto has announced that it will no longer use Takata products for its cars, a move that comes during Takata's airbag issues, which have called for the biggest automotive safety recall ever.
More and more automakers are distancing from the air-bag supplier, including Honda, which recently announced its decision to drop Takata as its airbag supplier for future models.
"The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota. What's most important above anything else is the safety and peace of mind of customer," Toyota President Akio Toyoda said, according to Bloomberg.
Despite over a year of criticism for its airbag safety issues, Takata continued to earn support from automakers. The company even had an increase of up to 14 percent in stocks in May.
Tides turned, however, when Honda revealed that it would stop using Takata's airbags.
"Although recall costs were piling up, Takata's operational profits weren't bad, which is why the market was optimistic. But with customers now distancing themselves from Takata, investors started worrying about how the company can pay all those costs. What can ease this drop? Until we know how it happened and where the responsibility lies, the trend is down," said Chihiro Ota, general manager at SMBC Nikko Securities in Tokyo, The Inquisitr reported.
Mazda, Subaru-maker Fuji Heavy Industries and Mitsubishi Motors have also said they were considering dumping Takata's airbag inflators in their new models, Automotive News reported.
