Takata CEO ready to resign image

Takata chief executive officer announced that he would step down after the company found an investor.

Takata CEO Shigehisa Takada, the grandson of the company’s founder, has been heavily criticized for not stepping down earlier, as the Japanese supplier has triggered the largest automotive recall in history. The safety crisis has also pushed the firm close to the edge of bankruptcy, facing billions of dollars in costs over the massive number of defective airbags. And this is the reason it hired the investment bank Lazard to come up with a rescue plan and to find a backer to offer financial support. Speaking at a recent shareholders meeting in Tokyo, Takada said it would resign once Takata is taken over by a new management team.

According to insiders, as many as 30 potential investors have shown their interest in a buyout since Lazar took control. To raise some money to cope with its ongoing precarious financial state, recent reports suggest Takata is cruelty selling the stakes it holds in various automakers. Considering the latest expansion of the airbag safety campaign announced in US and Japan, the number of recalls may exceed 100 million worldwide. The deadly inflators may be linked to up to 15 deaths worldwide, after another possible fatality linked with the crisis was reported on Sunday in Malaysia.

Via Reuters