May 29 (Nikkei) - The chairman of Suzuki Motor will voluntarily forgo compensation for a full year to atone for the string of inspection cheating scandals that led to one of the biggest recalls in Japan's history.
Chairman Osamu Suzuki will work without compensation for 12 months starting in July, the Japanese automaker said Tuesday. His son, President Toshihiro Suzuki, will receive a 50% cut in his compensation for six months. Both will give up bonuses for fiscal 2018.
The vice chairman, directors and other executives will receive pay cuts between 10% and 40% for periods lasting from three to six months. Board directors will relinquish fiscal 2018 bonuses as well. Hiroaki Matsuura, the director and managing officer in charge of production, will resign at the shareholders meeting in June.
The automaker was found to have doctored emissions and other data when testing completed vehicles and used unqualified personnel to inspect autos before shipment. This resulted in the company executing a recall in April spanning 2 million vehicles domestically. Suzuki said the recall will dent earnings by 80 billion yen ($730 million).
To prevent a recurrence of the scandal, Suzuki will establish a committee next month tasked with reforming the inspection process. Exams for prospective vehicle auditors will be improved, and all auditors will receive an upgrade in benefits. New equipment also will be installed to bolster product quality.
