The Surprising Step Down of Honda’s Chief Executive
Takanobu Ito, Chief Executive of Honda will vacate his office in the next four months. It is reported that the top executive will leave office for his subordinate Takahiro Hachigo in the month of June this year. The new engineer to replace Takanobu Ito, has more international experience according to the shocking report from Honda Motors early on Monday.
Business has been a bit bumpy for the third best Japaneese car producers in the previous year unlike Nissan and Toyota its leading counterparts. Honda’s most famous brand – Fit hybrid subcompact, has been recalled severally due to quality faults discovered. Mr. Takanobu Ito admitted to the fact that these quality defects might have resulted from the pressure of meeting up with sales target for the year.
To make issues worse, many Honda cars were returned for the replacement of airbags – these airbags were supplied from Takata, one the company’s best supplier. And, six people within the Honda company have died because of this.
There has been a serious restructuring taking place for three years now, and this was aimed at cutting down on the cost of production while still providing better technology. As a result, the previous supply chain of the firm was revamped by the Chief Executive, who has also worked as a top car engineer in the past.
Some analyst think this move by Honda is not surprising as this change is needed in a time like this to maximize profit. One of those with this school of thought is the top executive of Nakanishi Research Institute, Mr Takaki Nakanishi, who is an analyst for autos. When interviewed he said – ” I think this move is an attempt by Honda to tread a different course with someone who upholds harmony”
The new Chief Executive to take over from Mr Ito in June has had a lot of experience. He was with the team of engineer that produced popular brands like Odyssey and CR-V. After the annual meeting of Honda’s shareholders in June, Mr. Takahiro Hachigo will become the firm’s new chief executive.
Presently, Mr Hachigo is working in the Chinese office of the company’s research and development center as the vice president. He was employed by Honda in 1982, within this period, Mr. Hachigo has served this firm in its British, United States, and Chinese offices.
The current Chief Executive, Takanobu Ito, was appointed into office in 2009. It was also in a time like this – precisely during the period when financial crisis hit the globe. However, after stepping down, he will become an adviser to the firm and also a member of the board.