Suzuki patriarch steps down from CEO post as mileage test storm grows

  • Reuters
  • Updated: Jun 09, 2016 06:57 IST

TOKYO: Suzuki Motor Corp’s chief executive and chairman Osamu Suzuki will step down as CEO, the Japanese automaker said on Wednesday, after revealing last month its use of wrong mileage testing methods.

Osamu Suzuki will stay on as chairman, the company said, adding that executive vice-president Osamu Honda will retire.

Japan’s fourth-largest automaker by sales said in May it had used wrong tests to calculate mileage for models going back to 2010, submitting figures compiled from indoor tests performed on individual parts, rather than vehicle coasting tests.

Japanese investigators raided Suzuki’ s headquarters last week in their probe of the improper tests.

The change to chair man Suzuki’s role and the retirement of the vice-president will be effective June 29, subject to approval by shareholders at its annual general meeting, the company said.

Suzuki said it plans to introduce improvements, including better training for engineers and strengthening of its mileage testing systems. It would also encourage whistle-blowing.

Suzuki is present in India in joint venture with Maruti. Maruti Suzuki commands nearly half of the Indian market. Some of its best-selling models include Alto, Wagon R, Baleno and Swift.

Last month, Mitsubishi Motors president Te tsuo Aikawa announed his decision to step down, weeks after the company admitted it falsified fuel economy tests.

Last year, Volkswagen CEO Martin Winterkorn resigned, following admissions that the German automaker deceived US regulators about how much its diesel cars pollute.

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