TOKYO, Feb 23 — Honda Motor Co’s Takanobu Ito will step down as president of Japan’s third-largest carmaker after quality lapses led to record recalls last year.
Ito will become an adviser and will be replaced by Managing Officer Takahiro Hachigo, with the changes coming into effect in June, Honda said in a statement. The carmaker plans to hold a briefing to discuss the changes at 5pm Tokyo time.
Honda cut profit forecasts for the second time in as many quarters last month after recalls tied to flawed Takata Corp air bags and the new hybrid systems in its best-selling Fit compact car and Vezel SUV. The carmaker’s worst quality issues in decades have derailed plans to introduce new models, led Ito to take a pay cut and triggered the projection of Honda’s first profit drop in three years.
Honda fell 0.9 per cent to close at ¥3,928.50 in Tokyo. The company made the announced as the market closed. — Bloomberg
