Takata Corp. Adds Six Experts to Review Panel

By Angela Chen 

Six transportation experts will join former Secretary of Transportation Samuel Skinner on a panel to assess the practices of Takata Corp., the Japanese air bag company that came under scrutiny after its air bag explosions were linked to five deaths.

Takata said last month that it would form an independent review panel to investigate the company's handling of the air bag safety defect. The panel, chaired by Mr. Skinner, will be tasked with producing a report on Takata's manufacturing procedures and the safety of its air-bag inflaters and inflater propellants. The report will be made public upon its completion.

New members of the panel include Marion C. Blakey, a former administrator of the National Highway Traffic Safety Administration, and Nelda Connors, who has worked at Ford Motor Co and other automotive companies.

Last week, Takata chief executive Shigehisa Takada said that the company is still working to identify the root cause of why some of its air bags have exploded. Mr. Takada declined to comment on how long it will take for the company to fully identify the causes.

In some older-model cars, the air-bag inflaters are at risk of exploding with too much force and spraying the driver and passenger with metal shrapnel, Takata has said. The problem has led to 24 million vehicles recalled by 12 auto makers, including BMW AG, Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co.

Takata suspects that the problem is linked to high humidity and temperature. The NHTSA has pushed Takata to expand recalls beyond the original reach of humid U.S. areas, but Takata has resisted the demand, arguing it has limited replacement parts to fix the air bags and a national recall would divert resources from the hot, humid regions where owners are most at risk for air-bag explosions.

In December, Takata's president and chief operating officer Stefan Stocker stepped down due to the recalls. The company has also announced executive salary cuts, with Mr. Takada's monthly compensation halved for four months.

Other new members of the panel are John C. Landgraf, Julio M. Ottino, Jeffrey Runge and John W. Snow.

Shares of Takata have plunged 30% in the past three months.

Write to Angela Chen at [e-mail]

Access Investor Kit for Takata Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3457000002

Access Investor Kit for Ford Motor Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US3453708600

Subscribe to WSJ: http://online.wsj.com?mod=djnwires