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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

Subaru executive casts doubt on manual transmission future

Some disconcerting news for Subaru fans has come out from the Geneva Motor Show. Subaru's U.K. managing director told Auto Express that he doesn't see the manual transmission as having a future at the automaker. He explained that the company is really focusing on safety, and in turn Subaru's Eyesight technology. As a refresher, that system uses stereo cameras to enable features such as automatic emergency braking, lane keep assist and adaptive cruise control. The feature isn't currently available on manual-equipped Subarus, and the executive said he wasn't sure if the system was compatible. And with Subaru's push for safety and Eyesight, he said that continuing to offer manual cars without the system could undermine that push. This sounds dire at first, but we shouldn't panic yet. First, this is just an executive for Subaru's U.K. branch, not for the global company or the U.S., and car companies don't have the same offerings everywhere. For example, the Crosstrek is only offered with a CVT in Europe, but here in America – land of the free, home of the clutch – Subaru offers a six-speed manual. So, while it is possible that certain regions will have reduced or no manual options, that doesn't mean it would be across the board. View 22 Photos And even if Subaru decided it would phase out manual transmissions on most of its mainline cars, as it did with the Legacy, we can't imagine the company abandoning the transmission for its performance cars. WRX and STI fans would riot in the streets, possibly on their way to buy a next-generation Focus RS or Golf R, and the BRZ, a car built around the idea of driver engagement, wouldn't survive in a market with the Miata. Subaru may want to improve safety, but they're still a for-profit company, and sales of its performance cars would surely tank without a manual option. One more reason not to fret is that, while Subaru doesn't currently have a manual-compatible suite of semi-autonomous safety features, that doesn't mean it's impossible. As it so happens, Mazda offers low-speed automatic emergency braking as a standard feature on all its models in every trim. Mazda also has higher-speed emergency braking, lane keep assist and adaptive cruise control as options, and they are compatible with manual transmission cars. You can order up a top trim Mazda3 Grand Touring with a manual transmission right now. Keeping all this in mind, we think it's highly unlikely that Subaru will abandon the manual transmission.

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute