According to a company executive, who talked to the Nikkei newspaper, Japanese auto safety parts supplier Takata Corp has the necessary funds to cope with a global recall that has seen around 21 million vehicles globally involved in safety campaigns.
While the company has not yet found the root cause of the defective airbag inflators, they do know the crucial part tends to explode with too much force in case of an accident, spraying inside the cabin metal debris flying at high velocity. The products have been linked so far to five fatalities, four in the US and one in Malaysia – all in Honda vehicles, Takata’s largest client.
“Takata is prioritizing the supply of replacement parts. We have sufficient funds put aside, and we are not concerned that we are under-capitalized. We will take steps on the financing side if needed,” said CEO Shigehisa Takada, who is also the grandson of the company’s founder.
Takada’s family has ownership over 60% of the company, but the executive has not made any public appearances since an annual shareholder meeting in June. Asked if he was avoiding the public, he told the newspaper he was simply too busy with the company’s response to the mounting global crisis.