Honda Motor coping with large safety recalls over quality glitches and faulty air bags, said on Monday its chief executive would step down to make way for a low-profile engineer with extensive international experience.
The auto maker said Takahiro Hachigo, a 55-year-old managing officer based in China, will succeed Takanobu Ito , 61, as president and CEO by June. The timing of the news conference and the choice of Mr. Hachigo, who was promoted over more prominent executives, were unusual for a corporate culture that rarely surprises.
Honda is being challenged for its top five position in the U.S. by Nissan Motor Co. Last year, Nissan’s share of U.S. sales was 8.4%, less than a percentage point behind Honda, and it has been gaining ground in hot-selling sport-utility vehicles.
Honda has been hurt by stumbles in the U.S., Japan and China. Its popular Civic sedan was redesigned for 2013 after a year-earlier revamping received poor reviews in the U.S. for using cheap materials and a lack of improved fuel economy. Its Japanese sales this year were hurt by delays with the launch of a new Fit subcompact. In China, Honda’s 2014 sales were up just 4.1% in a market that expanded by 7%, widely missing an earlier sales forecast.
