The Chairman and Chief Executive of Suzuki Motor Corp Osamu Suzuki, will step down as CEO, over the controversy surrounding its mileage testing scandal. In the wake of the investigations, Executive Vice President Osamu Honda will retire from his post, while other executives will have their compensations reduced. Osamu Suzuki will remain as Chairman. Suzuki is the fourth largest Japanese car manufacturer.
The company admitted to using wrong mileage testing methods for a range of cars dating back to 2010. Japanese investigators paid a visit to the headquarters early in June. The changes at the executive level will be finalised after the board signs-off. Suzuki plans to change its testing methods to conform with national best-practices and re-train its engineers. The false tests meant their fuel-economy measurements for their automobiles were off.
This is similar to the scandal facing fellow Japanese automaker Mitsubishi, which has led to the resignation of its President, Tetsuro Aikawa. Mr Suzuki has led the company for 38 years and will now handover the CEO role to his son and current president, Toshihiro Suzuki. Osamu Suzuki is responsible for expanding the company’s global appeal, sales and revenue. Suzuki said he will stay on as chairman to prevent a similar situation from happening again.
