Honda CEO Takanobu Ito to be replaced by Takahiro Hachigo in a surprise move

Honda CEO Takanobu Ito to be replaced by Takahiro Hachigo in a surprise move

Honda Motor Co CEO Takanobu Ito would step down by the end of June, the Japanese automobile giant said on Monday. Ito, 61, will be replaced by managing officer Takahiro Hachigo. Ito has managed the operations of Honda Motor Co for six year and he was under pressure as Honda had to issue multiple recalls. Since 2008, Honda has recalled 14 million vehicles worldwide.

Due to quality issues Honda issued several recalls for popular Fit hybrid subcompact. Ito’s tenure as CEO was quite challenging as the company underwent lower production, failed Honda Civic launch. Ito changed many things at Honda and the way company functioned. He also introduced several cost-cutting measures at Japan’s third largest automobile company.

Honda release informed that Ito will remain a member of the board. He will also be an adviser to the company. The outgoing CEO and his successor will hold a press conference in Tokyo today.

Honda also cut its profit forecast for the second time. The company is still recalling vehicles due to Tataka airbag issue. Due to mounting recalls, Honda’s fresh launches have been delayed as well. The company is also facing issued with quality and this has dented its image in Japanese and many overseas markets.

Hachigo joined Honda in 1982 as an engineer. He was part of the team developing Odyssey minivans that were launched in the U.S. in 1999. He was promoted to managing officer last year.