Takata 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.