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Business

Investment firm Lazard takes the wheel at Takata

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Opening sequence

Business

Investment firm Lazard takes the wheel at Takata

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COMING UP:Investment firm Lazard takes the wheel at Takata

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Transcript

00:00:02
>> A new pair of hands to steer Japan's embattled airbag maker Takata. The company at the heart of the world's largest auto safety recall ever. In the driver seat international investment bank Lazard. A source telling Routers, the firm has sidelined the company's board and founding family and is heading the charge to overhaul the company and drum up the money needed to ride out the crisis.
00:00:22
Reuters' Ritsuko Ando says it's a break from precedent.>> In the past Japanese companies and the government have favored domestic solutions. Basically, Japan Inc taking care of its own. But that is increasingly expensive and unrealistic for Japanese companies. So we know that Takata's steering committee has hired Lazard, the investment bank, and they're talking to potential bidders.
00:00:43
For now from our sources we're hearing that they're talking to KKR, the private equity fund. And also China's Ningbo Joyson.>> Takata airbags have been know to spew metal shrapnel at passengers when they inflate. And have killed at least 13 people worldwide. The recall is putting the company on the hook for potentially billions of dollars.
00:01:00
But for now it's the customer's, car makers like Honda and Toyota, which are paying the costs.>> Auto makers are definitely not happy about helping Takata but they really have no choice. First of all the investigators have not come up with a conclusion on what exactly is to blame for these explosive airbags.
00:01:18
That's why the automakers are having to shoulder the cost. But also there just aren't any replacement parts, not enough.>> Sources say some car makers are bracing for the possibility of bearing some of the costs of Takata's overhaul by forgiving some of its debts, for example. Meanwhile, the recalls keep rolling in.
00:01:37
At 100 million cars and counting.