Takata management change leads to family control over growing crisis image

Japanese auto safety parts supplier Takata Corp. is at the center of a growing auto safety crisis and that finally showed internally – with the company’s president stepping down last week.

Since 2008, more than 24 million vehicles – most of them in the United States and generally in 2013 and 2014 campaigns – have been recalled globally because they are equipped with Takata-produced airbags. The system’s inflators can malfunction in case of an accident, exploding with too much force and sending metal shrapnel flying inside the cabin at high velocity. Stefan Stocker, who became Takata’s president to deliver more transparency and openness into a family-controlled parts maker, has left the position just two years after coming there.

That means Shigehisa Takada, the 48-year-old grandson of Takata’s founder and the company chief executive officer, now also named the president – is currently running the company alone. That also means he retains sole control over the way the supplier will respond to the escalating safety crisis that has so far claimed the lives of five innocent people. The move has though raised concerns from analysts, already baffled by the muted response from the top brass at Takata that has shaken confidence in the company’s future.

Via Automotive News