Suzuki CEO resigns over fuel-economy issue

Japanese car industry shakeup continues
by Gerard Jude Castillo | Jun 9, 2016
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Suzuki CEO resigns

Several weeks back, Suzuki admitted that it had reported inaccurate fuel-efficiency data to the Japan Ministry of Land, Infrastructure, Transport and Tourism. A total of 16 Japanese domestic market models were involved in said issue.

This latest controversy comes in the wake of fellow automaker Mitsubishi claiming that it had put forth fuel economy numbers that were inconsistent with real-world figures. The mess resulted in the resignation of the company's top brass in order to save face.

And now the Suzuki board of directors has also had its own reshuffle. Effective June 29, representative director and CEO Osamu Suzuki and representative director and executive vice president Osamu Honda will vacate their respective posts. They will do so as a gesture of remorse for the company’s wrongdoing. Suzuki will still remain on the board as chairman, however.

Suzuki management will go a step further in letting its stakeholders and the general public know that it is truly sorry. The board and a few of its key managers will give up a portion of their compensation and bonuses to "pay" for their misdeeds.

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The representative directors and directors will fully waive their bonuses, while the senior managing officers will let go of 50% of their bonuses for the year. As for salaries, the chairman will relinquish 40% of his monthly take-home pay for up to six months beginning this July. Even the auditors are willing to reduce their pay by 10% for three months.

Once again, we commend these fine gentlemen for their delicadeza or integrity in the face of shameful behavior. It takes real courage to do what they are doing.

 

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