Executive Vice President Osamu Honda is retiring.

Suzuki is restructuring its administration after it was revealed the company has been using non-compliant fuel economy testing methods.

First of all, the CEO and Chairman Osamu Suzuki will leave his position as a CEO and will remain Chariman. After 40 years in Suzuki, Osamu Honda will retire as Executive Vice President. The changes are scheduled to become effective on 29 June this year, if approved at the 150th Ordinary General Meeting of Shareholders. Still, there’s no decision on replacements for the CEO and executive vice president roles.

In an official statement, the fourth largest Japanese automaker by sales explains the change is to “clarify the responsibilities of the management” against “the improper conduct in application of driving resistance, different from regulations by the Ministry of Land, Infrastructure, Transport and Tourism.”

In addition, there will be a reduction of compensation for the management team, as representative directors and directors will not get a bonus for financial year 2015, while the bonus for all senior managing officers and managing officers will be reduced by 50 percent. Lower management stages will see lower compensation reductions – the representative director and chairman will have monthly compensation lowered by 40 percent for the next six months (starting from July), while senior managing officers and managing officers will get 10 percent lower monthly compensations for the next three months.

Check out the press release section below for more details.

Source: Suzuki via Automotive News

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