Executive - Suzuki Chief Steps Down
Japan's Suzuki Motor Corporation announced that its long-time Chairman and CEO Osamu Suzuki is stepping aside as chief executive officer, to take responsibility for the firm’s ongoing fuel data scandal.
The move will take place after this month's annual shareholders' meeting, and 86-year old will retain the largely ceremonial title of Chairman. Suzuki is the scion of the family that founded the giant corporation, and he's been in top management since 1978. He said, "it is essential that I take responsibility and also lead the company to reform itself."
In addition (or subtraction in this case), Vice President Osamu Honda will resign as boss of the Suzuki technology division. And as a show of pious contrition, all directors of the board will receive pay cuts and no bonuses during this fiscal year through March 2017.
Last month, Suzuki Motors admitted that it had more or less made up the fuel economy ratings for more than 2 Million vehicles. Japan insists that automakers run their vehicles on a road to gather data on rolling and air resistance. But Suzuki said its test course is too close to the ocean, and strong winds impeded and skewed test data. Instead, it had been data obtained from laboratory-style testing of individual components, such as the tires, brakes, and transmission.
The company says it will not repeat these mistakes: The test course is getting a wind-blocking wall, and engineers will get more legal compliance education.