Can Takata Survive Its Historic U.S. Air Bag Recall?

Unlike industries in which companies have been quick to drop offending suppliers to protect their brands, automakers have largely stood behind air bag component maker Takata, taking the hit to their own reputations from a series of recalls related to the Japanese company’s products that began in 2008. One reason: The tight supply of air bag parts amid the post-recession rebound has left them little choice. Takata commands almost a quarter of the market for air bag inflators—a critical part in a modern vehicle.

That loyalty is about to be put to the test. On May 19, after months of pressure from U.S. regulators, Takata admitted its products are defective and launched a national recall of 34 million vehicles—the largest recall ever of any U.S. product. More important for carmakers, Takata’s rivals are finally ready to boost production of their own inflator products.