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Suzuki CEO, Osamu Suzuki to Step Down over False Mileage Tests

Snapshot: The company also announced pay cuts for its directors in the aftermath of the mileage testing controversy.

Maruti’s parent company, Suzuki Motor Corporation said its Chairman and CEO Osamu Suzuki will give up the CEO position while announcing pay cuts for its directors in the aftermath of the mileage testing controversy. The company also said that its Executive Vice-President Osamu Honda will also retire, apologizing for the improper conduct in application of driving resistance, different from regulations by the Ministry of Land, Infrastructure, Transport and Tourism.

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The company said in a statement, “The change of Representative Directors and reduction of compensation for the management is to clarify the responsibility of the management against the improper conduct in application of driving resistance, different from regulations by MLIT.”

Suzuki, who has led the company for nearly four decades, acknowledged that during the past few years it had become difficult to oversee all of the company's operations on his own and will give up his CEO title. Osamu Honda, a Representative Director and Executive Vice-President, Chief Technology Officer will retire on June 29 subject to approval of shareholders at the 150th Ordinary General Meeting, SMC said. Suzuki, 86, will remain as chairman, but his narrower role is a recognition of responsibility for a testing error the company previously shrugged off. 

The company said in a statement that “it will promptly work on measures to prevent recurrence of such an incident in future”, SMC said, “We express once again our deep apologies to our customers, clients and all stakeholders for any inconveniences and concerns caused.”

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