Fuel Economy Scandal Forces Suzuki Chairman to Resign as Chief Executive
One of the biggest car makers in the world found itself amidst an existential crisis that it has never experienced throughout its existence and needless to say, the fuel economy scandal was something that was going to hit Suzuki very hard irrespective of anything that the company might have planned as damage control measures. After weeks of speculation in the local press in Japan, it has emerged that the long time chairman of the company, Osamu Suzuki, is going to step down from his post as the chief executive of the company and as expected, the fuel economy scandal has brought his reign that has stretch over four decades at Suzuki to an unceremonious end.
The scandal has coincided with the pollution ratings scandal that engulfed German car makers Volkswagen and it has resulted in a massive trust deficit among consumers. Suzuki's tests in relation to the fuel economy of the cars taht it sells to the public in Japan was found to have been improper and it is not a surprise that Osamu Suzuki has had to step down as a consequence. The fuel economy scandal has also affected fellow Japanese car makers Mitsubishi and it has been found that the engineers at their factories had also indulged in improper testing processes when it came to testing the fuel efficiency of their cars.
The New York Times reported further on the succession plan of the company in a report, "Suzuki Motor said on Wednesday that Mr. Suzuki, 86, would give up his position as chief executive but retain the title of chairman. It said the move was intended "to make management responsibility clear" over the testing problem, which it revealed last month. The company did not say who would replace Mr. Suzuki as chief executive, but his son, Toshihiro, is widely seen as a leading candidate. Toshihiro Suzuki became chief operating officer and executive vice president last year. The company will need to name its new chief executive before its annual shareholder meeting set for June 29, when Osamu Suzuki's resignation from the role is scheduled to take effect."
