The company is 83 years old, and it is one of the largest auto parts manufacturers in Japan. Takata Corp was started by Juichiro Takada, who built an incredible auto parts empire, and then died in 2011. His son—Shigehisa Takada—took over the business in 2013, but he hasn’t been able to live up to his father’s legacy.
Is the CEO of Takata On His Way Out?
The airbag recall responsible for the largest automotive recall ever—nearly 50 million vehicles could be affected—has brought this once proud parts manufacturer to its knees. The fate of the company could rest in the results expected from German investigation firm Fraunhofer, which was contracted to investigate the airbag inflator explosions.
If the investigation pins responsibility on Takata, then the costs of fixing defective airbags could fall upon the Japanese manufacturer. So far auto manufacturers like Honda and Toyota have been paying for the recall costs, but if this report and others point the finger at Takata, these automakers may insist on Takata taking responsibility.
To show the company’s willingness to accept responsibility, and as a tactic to help keep the financial support of car makers, Shigehisa Takada and several other executives have offered their resignations as a potential solution to this calamity. So far there are no specifics about what would invoke the offered resignations, nor has a time table been revealed, but the executives hope that this will help the company survive this scandal.
Will it be enough? Should Takata Corp still get financial support from automakers if certain executives resign? How will these resignations affect consumers who bought cars with these defective devices? Keep following our blog for more answers, and don’t be afraid to post your questions on Twitter and Facebook.