Suzuki chairman to step down as CEO over improper fuel tests image

Following the fuel-economy tests scandal, Suzuki announced that its chairman Osamu Suzuki will give up on his CEO position.

Osamu Suzuki will step down from his chief executive office role effective June 29, but will stay on as chairman of the company, Suzuki said in a statement. Furthermore, it announced that vice president Osamu Honda would retire, all of these being moves that will have to be approved by shareholders at the company’s annual general meeting. After Mitsubishi was discovered in April to be manipulating the mileage readings, Suzuki also came up front and said it used nonconforming fuel emissions tests for almost all its cars sold in Japan by gathering data and predicting the readings from indoor tests made on individual parts, rather than the vehicle coasting assessments required by the regulators. The Japanese investigators have been looking into verifying the matter by raiding the automaker’s headquarters to collect further probes.

Suzuki said it would inflict some “disciplinary measures” on its top management team by shaving off entirely some bonuses for the 2015 financial year and by further cutting monthly wages by up to 50 percent as of July, for up to 6 months. It also committed to take measures so that this level of negligence would not happen again, such as better training for engineers, improving its fuel-economy testing systems and “promote utilization of whistle-blowing”. The scandal affected 2.14 million vehicles from 14 branded models and 12 more sold under other brands.