Takata Corp CEO Shigehisa Takada said on Tuesday he would resign after a “new regime” is found for the auto parts supplier, finally bowing to calls to step down over a long-running recall crisis.
Takata is seeking a financial backer to help it bear to costs of a massive global recall of potentially deadly air bags.
Speaking at a shareholders meeting in Tokyo, Takada told investors he would stay in his role “until a hand-off”.
Sources close the company had told Reuters earlier this year that he could step down and take responsibility for the industry’s worst ever recall. But the company said then that Takada had no intention of resigning at that point.
Since, pressure has been building on the Tokyo-based company and the bookish grandson of the group’s founder.
Investment bank Lazard is now heading a process to seek financial support for Takata as it faces mounting liabilities.
As many as 30 potential investors have indicated initial interested in providing support for the company, and the “new regime” Takada mentioned likely refers to a team expected to take over once a deal is struck.
Takata shares were down 6.8 percent in early afternoon trade.