Honda Motor Co will revamp management as recalls persist one year after internal quality woes and a safety crisis at top supplier Takata Corp prompted the company to change chief executives.
Chairman Fumihiko Ike will retire along with executive vice president Tetsuo Iwamura and seven other top executives, Honda said in a statement. Seiji Kuraishi, currently in charge of the automaker’s China business, will replace Iwamura, 64, as executive vice president.
Honda is assembling a new team to report to president Takahiro Hachigo, one year after Japan’s third-largest automaker tapped him to succeed Takanobu Ito amid struggles with unprecedented quality issues. The company is preparing to recall 2016 Civic cars, months after introducing the most crucial redesigned model under Hachigo, 56, because some engines may fail. Honda also is the biggest customer for Takata, whose air bag inflators are responsible for the industry’s biggest safety recall ever.
“Their quality problem is still going on,” Koji Endo, an analyst with Advanced Research Japan, said by phone before Honda announced managements changes. “It’s not just one person’s responsibility; it’s the responsibility of the whole organization. I don’t know if just switching the top can solve all the problems.” Since 2008, Honda has recalled vehicles to replace about 30mn Takata air bag inflators, which can rupture and spray metal and plastic shards at vehicle occupants. The components have been linked to nine fatalities in Honda models, and the cause of death in a 10th incident is still being investigated.
Yoshiyuki Matsumoto, the chief operating officer for auto operations, will become president of Honda’s research and development unit, replacing Koichi Fukuo, who is retiring. Honda R&D is significant because all previous presidents before Hachigo had run the division. Yasuhide Mizuno, the head of Honda’s joint venture with Guangzhou Automobile Group, will succeed Kuraishi, 57, to lead the Japanese automaker’s China operations. Asako Suzuki, the chief of the company’s joint venture with Dongfeng Motor Corp, will become Honda’s first female operating officer.
The promotions for two of Honda’s top executives in China follow the company topping 1mn vehicles sold in the world’s largest market for the first time last year.
Honda fell 0.6% at the close in Tokyo. The shares have declined 26% in the past year, compared with the 14% drop for the benchmark Topix index. The management changes were announced after the close of trading.