Suzuki steps down as CEO after fuel-economy testing scandal

Suzuki Motor Corp said its chairman and chief executive officer will give up his CEO post and one of his deputies will resign to take responsibility for the fuel-economy testing scandal on Wednesday.

Osamu Suzuki, 86, will step down as CEO but retain his position as chairman and his deputy Osamu Honda, 66, executive vice president and chief technology officer will resign. The change will take effect on 29 June at a general shareholder’s meeting.

Directors will also waive their bonuses for the year and senior managing officers will see their bonuses halved.

In May, Japan’s fourth automaker by trade sales, said they had used wrong tests to calculate mileage.

They submitted figures compiled from indoor tests performed on individual parts rather than vehicle coasting tests on models dated from 2010.

The method was not approved by Japanese regulators on 26 models. Suzuki said 16 models are affected on about 2.14m cars sold in Japan.

Suzuki Motor is the second company to say it used unapproved testing methods after Mitsubishi Motors admitted cheating on fuel mileage tests for the past 25 years in April.

In response to Mitsubishi Motor’s admission Japan’s transport ministry ordered automakers to investigate their fuel-economy testing methods.