Takata’s CEO May Resign Over Airbag Inflator Recalls

Shigehisa Takada, CEO of embattled airbag supplier Takata Corp., is likely to resign today, accepting responsibility for supplying defective airbag inflators that have been linked to at least 10 fatalities, The Nikkei reports.

The company faces bankruptcy as the number of vehicles recalled to replace exploding Takata inflators reaches more than 40 million worldwide, including 24 million in the U.S. The cost of replacing the devices has been estimated to exceed 300 billion yen ($2.5 billion).

Takada, who also serves as the company's chairman, is the founding family’s third member to hold the CEO job. The Nikkei notes that he said in November he would not resign, because completing the recalls is his responsibility.

The company has been asking Japanese carmakers to help pay for the repair costs. But The Nikkei says most manufacturers are skeptical of the company’s competency after it admitted lying to its customers about the scope of the inflator crisis. Takata still has not clearly identified the process that causes the inflators to fail. Most of its customers have announced they won’t buy Takata inflators for future models or to replace the company’s own recalled devices.

CEO Takada is expected to leave the company after a proper supply of replacement inflators has been established, according to the newspaper.