Suzuki Motor President Named to Double as CEO

Hamamatsu, Shizuoka Pref., June 29 (Jiji Press)--Suzuki Motor Corp. (TYO:7269) decided on Wednesday to let its president, Toshihiro Suzuki, double as chief executive officer, the post that his father, Osamu Suzuki, relinquished the same day to take responsibility for the Japanese automaker's fuel economy data fraud scandal. The decision was made at the company's board meeting after a general meeting of Suzuki shareholders held in Hamamatsu, Shizuoka Prefecture, central Japan, earlier in the day. Shifting from authoritarian management led by the elder Suzuki to collective governance under the younger Suzuki, the eldest son of Osamu, and restoring public confidence in the company at an early time are important challenges for the automaker. But it remains to be seen if Suzuki Motor can carry out thorough management reforms, because Osamu continues to serve as chairman with the right to represent the firm, analysts say. "We are now in the worst situation," the elder Suzuki, who has led the company since 1978, first as president and then as chairman and CEO, said at the shareholders meeting, referring to the data fraud. "It is important for me to remain with the company to help prevent a recurrence of similar wrongdoing and fulfill my responsibility," he said, in response to a shareholder who urged him to step down as chairman too. The younger Suzuki, who became president a year ago, cited the closed nature of his company as a cause of the scandal. The transport ministry has noted that the supervisory system of the company's management team is insufficient. The new CEO plans to lead Suzuki Motor's work on reforming its automobile engineering division, the hotbed of the wrongdoing, and other sections and reeducating its employees to strengthen compliance.Copyright JIJI PRESS LTD.