AUTO INDUSTRY NEWS

Report: Takata CEO will not resign amidst airbag scandal

Report: Takata CEO will not resign amidst airbag scandal image

Text: Aurick Go / Photos: images from Takata | posted February 01, 2016 15:17

Takata says CEO Shigehisa Takada has no intention to resign

Takata CEO Shigehisa Takada remains in charge of the controversial automotive supplier despite reports earlier this month pointing towards his resignation.

Anonymous sources indicate such an announcement but, Takata said in a statement that “as of now he has no intention to resign.”

Having been highly criticized for their responses to the airbag fiasco, the company is left in a precarious position. Without any answers regarding to the questions about the recall, major investors such as Sawakami Asset Management have begun divesting their shares in Takata. Demand for their products have severely dropped as well, with Ford, Toyota, Honda and Mazda refusing to use any of Takata’s ammonium nitrate propellant-laden airbags in their future vehicles.

With a little over 2 years into the airbag issue, just last week Takata has expanded the recall to another 5 million vehicles in the US after the death of a driver in a Ford Ranger. While the Blue Oval has provided reports on its safety campaign, the National Highway Traffic Safety Administration (NHTSA) expects Audi, BMW, Daimler Vans, Honda, Mazda, Mercedes Benz, Saab and Volkswagen to follow suit with reports.

Takata’s airbag recall involves their use of ammonium nitrate in their inflators that can potentially propel metal fragments onto users in the event of a crash.