Takata cuts profit outlook

Takata has cut its profit outlook by 75% after market leading carmakers begin to drop its air bag inflators.

Honda, Toyota and Mazda have all said that they will no longer fit Takata inflators containing ammonium nitrate to new cars.

The firm now expects full-year profit of 5bn yen (£27m) instead of 20bn yen.

The inflators have been linked to eight deaths, all in Honda cars, triggering the recall of tens of millions of vehicles worldwide.

Takata shares have lost nearly 40% of their value in three days after the firm was fined up to $200m (£130m) by US regulators and ordered not to use ammonium nitrate in its inflators.

Takata has said it would phase out the chemical, used in the majority of its inflators, by the end of 2018.