Suzuki Motor Corporation (SMC) announced that its board has appointed Toshihiro Suzuki (son of Chairman Osamu Suzuki) as its next chief executive officer, effective immediately the same day. Being the president and chief operating officer of SMC, Toshihiro Suzuki will take charge from his father and former CEO Osamu Suzuki, who has led the company since 1978. The changes in management come into action to recover from the vehicle testing scandal.
Earlier, the company announced that the chairman and CEO Osamu Suzuki will step down as CEO following the confession that it used the wrong methodology for mileage testing of its cars, while he also that the company's strong top-down culture is partly to blame for a lack of communication internally that led to the use of inappropriate testing methods in Japan. He decision to hand over his position to his son at the company's shareholders meeting in Hamamatsu, Shizuoka Prefecture. However, he will stay on as chairman.
The fudging fuel-efficiency claim came in to lime light, when 16 models by the automaker on sale in Japan under the inspection for improper fuel-efficiency claims that includes cars like Wagon R, Swift, S-cross and the Made-In-India Baleno. While the company stated that this impacts the cars sold in Japan only and not it’s overseas markets.