Takata shares up sharply
June 28, 2016
Takata shares surged on Tuesday after the airbag supplier's CEO indicated he would resign once the company recovered from a scandal linked to at least 13 deaths and scores of injuries globally.
The Tokyo-listed stock gained more than 10 percent in afternoon trade, as Chief Executive Shigehisa Takada (pictured above) told an annual shareholder conference he would step down.
"Once I'm convinced the company is back on track, I will pass the baton to new management," he told the closed gathering, the "Nikkei" business daily reported.
Under pressure
Takada had been widely criticized for his handling of the crisis, rarely appearing in public as the firm plunged deeper into turmoil.
The supplier is facing lawsuits, investigations and huge compensation costs over a defect that can send metal and plastic shrapnel from the airbag's inflator canister hurtling toward drivers and passengers when an airbag is deployed.
The faulty parts have led to a recall of some 100 million Takata airbags worldwide.
The "Nikkei" recently reported that US private equity firm Kohlberg Kravis Roberts (KKR) was looking to buy a majority stake in Takata, which logged a huge net loss in its latest business year.
hg/jd (Reuters, dpa)