Nissan decided to stop using the airbag inflators made by Takata as part of the carmaker's commitment to put their customers' safety on top of their priority.
The decision came following the move by other major automakers on ceasing to use Takata's inflators which have led to massive and costly recalls worldwide.
"We will continue to put our customers' safety first and work to replace the inflators in vehicles under recall as quickly as possible," said Nissan.
On its second quarter earnings report, Tokyo-based Takata posted a $70 million loss along with a slashed net income forecast of 5 billion for the full-year compared to the initial $162 million. Such results had been attributed to the losses that were incurred from the recalls.
["W]ith 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 Tokyo-based SMBC Nikko Securities Inc.
Other carmakers that said they are also considering to stop using any of Takata's airbag inflators in their future models include Mitsubishi Motors, Fuji Heavy Industries and Mazda.
On the other hand, Toyota may continue using Takata airbags so long as they don't contain parts that are linked with accidents.
Takata's airbag business makes up the company's biggest product segment which means that the massive worldwide recalls and the loss of doing business with major carmakers could undoubtedly bring a huge blow. The inflators in question form only a fraction of its airbag products. Other products they can put more focus on include child seats, electronics, steering wheels and seat belts.
The company's defective airbags have been linked with hundreds of injuries and eight deaths. So far, there are around 50 million vehicles around the world which had been recalled as a result of the issue.
In the meantime, companies such as TRW Automotive, Autoliv Inc. and Daicel Corp are stepping up to offer alternative components to carmakers. As Takata wrote on its letter to the U.S. National Highway Traffic Safety Administration (NHTSA), these companies will make around 68 percent of the needed components at least by March.
Nissan said that it will conduct a repeat inspection of affected vehicles in Japan following an incident last week when a passenger suffered from injuries after her Takata airbag deployed in a collision.