Takata CEO Shigehisa Takada to resign after new investor found
Takata chief executive Shigehisa Takada has said he will step down once the company secures new investment, as the airbag safety crisis continues to threaten the supplier's future.
Takata chief executive Shigehisa Takada has announced he will resign once the Japanese supplier secures a new investor, as the company struggles with the ongoing airbag recall crisis and mounting financial losses.
Takada, the grandson of the company's founder, made the statement during a shareholders' meeting in Tokyo. He said he would step down after a new management team takes control, once Takata is taken over by a new backer. The company has hired investment bank Lazard to lead the search for a financial rescue and potential buyer.
Global recall and financial strain
Takata is at the centre of the largest automotive recall in history, with its defective airbag inflators linked to at least 15 deaths worldwide. The recall campaign has already affected tens of millions of vehicles, and recent expansions in the US and Japan could push the total number of recalled airbags above 100 million globally.
The scale of the safety crisis has left Takata facing billions of dollars in recall and compensation costs. The company has reportedly begun selling stakes in automakers to raise funds and stabilise its finances while the search for a buyer continues.
Next steps for Takata and industry impact
According to insiders, Lazard has attracted interest from as many as 30 potential investors since being appointed. Any takeover would likely see Takada replaced by a new management team, as the company attempts to restore confidence among automakers and regulators. The ongoing uncertainty has put pressure on Takata's workforce and supply chain, with the future of its operations dependent on securing fresh capital and leadership.
The Takata airbag crisis has already prompted other suppliers to review their own safety systems and recall procedures. For more on how major recalls affect the supply chain, see Continental Named as Supplier in Audi’s 850,000-Car Airbag Recall.
