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 Facing the media for the first time since the company's recall
crisis erupted over a year ago, Chief Executive Shigehisa Takada
apologized for the defective inflators, which have been linked to
eight deaths and more than 100 injuries.
The lack of progress in finding out why some of its inflators can
deploy with too much force and spray metal shards is set to turn up
the pressure on Takata as carmakers continue to expand a recall that
is already the biggest in automotive history.
U.S. lawmakers this week also raised the possibility that the
company put profits before safety by halting global safety audits.
Takata has disputed the accusation.
"The analysis isn't progressing very well," Takada told a news
conference that followed the company's annual general meeting. "I'm
concerned about that."
He said, however, that Takata would continue to use ammonium
nitrate, a volatile chemical, as an air bag propellant, stressing
that third-party investigations it commissioned have vouched for its
safety.
Since the crisis began, tens of millions of vehicles have been
recalled worldwide and multiple investigations are underway
including those commissioned collectively by 10 automakers as well
as Takata's own probe. Its shares have plunged 38 percent since last
June when U.S. authorities opened their investigation.
Often glancing down to read from a prepared text and sometimes
mumbling, Takada, 49, said he intended to continue leading the
company founded by his grandfather, saying that was the appropriate
way for him to take responsibility.
At the annual general meeting, shareholders criticized Takada for
his failure to appear in public to address the issue, the slow
progress in resolving the crisis and the lack of a dividend,
although there were no overt displays of anger.
The meeting was attended by about 200 shareholders - a record
number, according to the parts supplier.
"I'm concerned about the company's future," said 46-year-old
shareholder Masahiro Yamazaki, emerging from the meeting. "Without
being able to nail down the cause, it looks like a quick resolution
will be difficult."
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Clouding its financial outlook, the company, which posted a net loss
last year, has not set aside provisions for the cost of most of its
recalls. Takada said it was not clear where responsibility for the
costs lay for recalls where the cause of the defect is still
unknown. The company also faces multiple lawsuits.
Toyota Motor Corp said on Thursday it would recall another 2.9
million vehicles to replace passenger-side air bag inflators. Nissan
Motor Co added another 198,000 to its tally.
Automakers including top customer Honda Motor Co have said they are
turning to other inflator makers such as Sweden's Autoliv Inc and
Japan's Daicel Corp to supply replacement parts as Takata struggles
to produce them quickly enough.
Analysts say, however, that automakers are unlikely to abandon
Takata in the short term given that it accounts for a fifth of the
world's production of air bag inflators.
(Additional reporting by Minami Funakoshi; Editing by Edwina Gibbs)
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