Aurick Go / Suzuki | June 09, 2016 14:15
Resignation will clarify responsibility of management for improper conduct
Upon their revelation that they have been using improper testing methods to determine fuel economy, Suzuki Motor Corporation (SMC) is now restructuring its administration as it faces a looming scandal.
Having begun their restructuring from the top of the management chain, Osamu Suzuki, the CEO and Chairman of SMC announced his intention to resign as CEO; He will however still remain as Chairman of the company. Suzuki’s executive vice president, Osamu Honda, also announced his retirement after 40 years of service in the company.
If approved at the upcoming 150th Ordinary General Meeting of Shareholders, these changes are set to take effect on June 29. Suzuki have yet to annouce their intended replacements for the open positions.
Suzuki’s official statement explains the changes were put in place to “clarify the responsibilities of the management” against “the improper conduct in application of driving resistance, different from regulations (set) by the Ministry of Land, Infrastructure, Transport and Tourism.”
Aside from removing members of the top brass, the management team will see an overall reduction of compensation. The representative directors as well as the directors themselves will not see bonuses at the end of the financial year of 2015, while bonuses for all senior managing officers and managing officers will be reduced by 50 percent. Lower management will also see a reduction in compensation – the representative director and chairman will have monthly compensation lowered by 40 percent over the next six months (beginning in July), and senior managing officers and managing officers will get a cut of 10 percent over the next three months.