Honda, Grappling with with Quality Problems, Will Replace Its President
http://www.nytimes.com/2015/02/24/business/international/honda-replace-president-chief-executive-takanobu-ito.html?src=mv&_r=0
Honda Motor issued a statement on Monday stating that it was replacing its president and chief executive, Takanobu Ito. This might be a sign that the Japanese automaker is trying to fix a lot of its recent quality problems. Honda has faced with a lot safety issues and delays recently especially the issue with their faulty airbags. Most of these problems have been attributed to Mr. Ito's and his team's faulty management.Mr. Ito in a statement mention that it was his decision to step down, claiming “At a time of rapid change and increasingly harsh global competition, I thought it was a good opportunity to bring in young energy to lead Honda,” .
5 comments:
After Takanobu Ito has steps down as president, he will be appointed as a senior advisor. This is an example of lifetime employment. Although Ito is no longer the face of the company, he still is apart of it. Since Ito has firm specific knowledge, he can still be of use to Honda.
I agree with Jonel. Although there have been some issues with Honda, that may or may not be because of Ito, he still possess a lot of knowledge about Honda and could be of use in the future.
This move was necessary by Honda. Its brand name and recognition of quality is what drives much of its business in America. The next steps to abate Ito and his team's mistakes will be of the utmost importance in maintaining their economic moat. Toyota ran into similar problems a few years ago with brake issues, but they have appeared to fair fine. I do think that Jonel and Nicole brought up fascinating points about the Japanese business culture and his retention as an advisor.
The lifetime employment point is quite interesting, and Ito's remaining a part of the company (rather than CEO hopping like some companies in the US do) as well as willingly stepping down and acknowledging his own/his team's mistakes are both fascinating. The difference in business culture is rather astounding.
This is a good change. with the long term employment policies, it's difficult for japanese companies to catch up with the everchanging technology world we live in. Having younger management team might promise more innovation sparks in the companies.
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