Ford, GM still doing new business with Takata amidst airbag crisis
 

<p>Filed under: <a href="http://www.autoblog.com/category/safety/" rel="tag">Safety</a>, <a href="http://www.autoblog.com/bmw/" rel="tag">BMW</a>, <a href="http://www.autoblog.com/ford/" rel="tag">Ford</a>, <a href="http://www.autoblog.com/category/gm/" rel="tag">GM</a>, <a href="http://www.autoblog.com/category/earnings-financials-1/" rel="tag">Earnings/Financials</a>, <a href="http://www.autoblog.com/category/technology-1/" rel="tag">Technology</a></p><a href="http://www.reuters.com/article/2014/11/19/us-takata-recall-automakers-idUSKCN0J32L320141119"><i mg alt="Germany Japan Automotive Supplier" data-caption="A worker demonstrates a pyro-electric wheel airbag initiator during a presentation for journalists at the international automotive supplier Takata Ignition Systems GmbH in Schoenebeck, Germany, Thursday, April 17, 2014. The Takata Corporation is a leading global supplier of automotive safety systems such as seat belts, airbags and child seats. The company has 46 plants in 17 countries around the world. (AP Photo/Jens Meyer)" data-credit="ASSOCIATED PRESS" data-mep="572156" src="http://o.aolcdn.com/dims-shared/dims3/GLOB/crop/3838x2547+0+151/resize/628x417!/format/jpg/quality/85/http://hss-prod.hss.aol.com/hss/storage/midas/b7dba27f1478005ed58933455 5f434b4/200267655/ec69c062eb2e4f359f5fdf643 ce6ee4b.jpeg" /></a><br />
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<p>Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier.</p>
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You might expect automakers to be fleeing any connection with beleaguered supplier <a href="http://www.autoblog.com/tag/takata/">Takata</a> in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, <a href="http://www.autoblog.com/2014/11/18/honda-replacing-airbags-nationwide-takata/">pending lawsuit</a>, <a href="http://www.autoblog.com/2014/11/13/takata-chairman-disappears-airbag-crisis/">plummeting stock value</a> and <a href="http://www.autoblog.com/2014/11/19/nhtsa-demands-national-recall-takata-airbags/">demand for a national recall</a>, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well.<br />
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<a href="http://www.bloomberg.com/news/2014-11-19/ford-s-takata-tech-shows-air-bag-maker-s-hard-to-cut-ties.html">About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation</a> too, says <em>Bloomberg</em>. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to <em>Bloomberg</em>.<br />
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For example, Takata helped develop the unique front center airbag with <a href="http://www.autoblog.com/category/gm/">General Motors</a> in models like the <a href="http://www.autoblog.com/chevrolet/traverse/">Chevrolet Traverse</a> and <a href="http://www.autoblog.com/buick/enclave/">Buick Enclave</a>. Outside of safety tech, it is also a partner with <a href="http://www.autoblog.com/ford/">Ford</a> on the adaptive steering system available on the upcoming <a href="http://www.autoblog.com/ford/edge/">2015 Edge</a>.<br />
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These long-lasting partnerships make change difficult now that there's a problem. According to <em>Reuters</em>, automakers <a href="http://www.reuters.com/article/2014/11/19/us-takata-recall-automakers-idUSKCN0J32L320141119">cl aim it would take a year or longer</a> to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed.<br />
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BMW is taking action, though. According to <em>Reuters</em>, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant <a href="http://www.autoblog.com/2014/06/12/nhtsa-airbag-investigation/">may be the source of some of the faulty parts</a>.<p style="padding:5px;backgr ound:#ddd;border:1px solid #ccc;clear:both;"><a href="http://www.autoblog.com/2014/11/20/ford-gm-takata-business-continues/">Ford, GM still doing new business with Takata amidst airbag crisis</a> originally appeared on <a href="http://www.autoblog.com">Autoblo g</a> on Thu, 20 Nov 2014 16:41:00 EST. Please see our <a href="/rss-term-of-use/">terms for use of feeds</a>.</p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href="http://www.autoblog.com/2014/11/20/ford-gm-takata-business-continues/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/forward/20996668/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2014/11/20/ford-gm-takata-business-continues/#comments" title="View reader comments on this entry">Comments</a>

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