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Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

Mazda to use rotary engine as a range-extender with its first electric vehicle

There's more news from Mazda at the Tokyo Motor Show, where the brand made a big splash, including new developments in its never-ending rotary engine saga. First, Mazda execs confirmed that the Japanese automaker will bring back the rotary engine as a range-extender and battery juicer for its first electric vehicle in 2019. But secondly, the company won't have a rotary-powered successor to its RX-7 and RX-8 sportscars in time for the company's centennial anniversary in 2020. Autoblog previously confirmed that Mazda is planning to have an EV in 2019 that will be available in both pure electric and range-extending versions. Now, the Australian website Motoring reports that the global EV will feature a powertrain similar to the experimental Japan-only Mazda2 (Demio) EV, which used a single-rotor engine as a generator to power the battery pack and increase its driving range. The publication says Mazda plans to release a series of plug-in hybrids based on existing models around 2020, then a pure electric car co-developed with Toyota and Denso in 2021 as part of the EV Common Architecture Spirit Company joint venture. A Mazda spokesman tells Autoblog the company couldn't confirm any details about future products. Meanwhile, enthusiasts shouldn't wait for a rotary-based production version of Mazda's RX-Vision concept from 2015. Motoring cites two executives who explain that the company simply lacks the capital necessary to invest in developing the new model in time for its 2020 centennial. Mazda debuted its rotary engine 50 years ago in the Cosmo Sport in part as a way to stand out from its larger Japanese competitors. The engine, which uses a spinning three-tipped rotor in place of pistons, is smaller and lighter than conventional piston engines, with a greater power-to-weight ratio and quieter, smoother operation. But it delivers less fuel economy and higher emissions — two weaknesses that could be improved via a stop-start system Mazda has developed, based on a pair of U.S. patents. The company has also been hard at work developing its next-generation Skyactiv-X engine, which uses highly precise combustion ignition technology to deliver significant gains in fuel economy and power.Related Video:

Toyota, Mazda partner to build EVs at new $1.6 billion U.S. plant

TOKYO — Toyota and Mazda plan to build a $1.6 billion U.S. assembly plant, the two said on Friday, as part of an alliance that will also see the Japanese automakers jointly develop electric vehicle technologies. The two will take small stakes in each other as part of the tie-up: Toyota, the world's second-largest automaker by vehicle sales last year, will take a 5 percent share of Mazda, extending its dominance in Japan's auto sector. Mazda will take a 0.25 percent share of its larger rival. The plant, something of a surprise at a time of overcapacity in the U.S. market, will be a boost to U.S. President Donald Trump, who campaigned on promises to increase manufacturing and expand employment for American autoworkers. The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people. It will start operating in 2021. The electric vehicles cooperation, meanwhile, comes as the tightening of global emissions regulations prompts more automakers to develop battery powered cars, as the industry struggles with hefty research costs and intense competition from technology companies over technology like self-driving cars. As part of the agreement, Toyota and Mazda will also work together to develop in-car information technologies and automated driving functions. Toyota, Japan's biggest auto company, has been forging alliances with smaller Japanese rivals for several years, effectively engineering a loose consolidation of the Japanese auto sector. It already owns a 16.5 percent stake in Subaru, Japan's No. 6 automaker, with which it also has a development partnership. Toyota is also courting compact car maker Suzuki to cooperate on R&D and parts supply as Toyota seeks to tap its smaller rival's expertise in emerging Asian markets. A stake in Mazda may also prevent future incursions by tech companies, one analyst said. "For a technology company which lacks the expertise in making cars, Mazda could look like a very interesting acquisition. They're very good, they're not too expensive. Maybe Toyota realizes this," CLSA managing director Chris Richter said. "By buying a 5 percent stake, Toyota takes Mazda off the table rather than having it sit out there like a free agent which could someday be used against them." COROLLA PRODUCTION SHIFT Mazda stands to gain from a deal that gives the small automaker a production foothold in the United States.