TOKYO -- Honda Motor said Monday that it is replacing its president and chief executive, Takanobu Ito, a sign the Japanese automaker is addressing recent quality problems.
Honda has grappled recently with a series of safety issues and development delays. Although the origins of some of the problems -- notably faulty air bags made by the Japanese supplier Takata -- predate Ito's tenure, other complications have been easier to attribute to him and his management team.
Last year, in response to an embarrassing string of events, Ito appointed a senior managing officer to oversee quality. Those problems included a half-dozen recalls over one year for one of Honda's best-sellers, the Fit subcompact, after a redesigned model was introduced in 2013, and revelations that Honda waited years to recall cars with air bags that could explode.
Ito, 61, said the decision to step aside had been his, and he acknowledged that there had been difficulties during his tenure.
"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," he said at a news conference.
Ito will be replaced by Takahiro Hachigo, 55, whose recent duties have included overseeing the automaker's European and Chinese operations. The change will take effect after Honda's annual shareholders meeting in June, Honda said. Ito will remain on the board, with the title of senior adviser.
Hachigo is little known outside the company, but his career path resembles those of past Honda presidents, including Ito. He is an engineer who has spent his whole career at Honda, and he has overseen the development of popular models such as the Odyssey minivan and CR-V crossover.
"He's the sort of person who listens to everyone and promotes other people's opinions," said Koji Endo, a veteran car-industry analyst at Advanced Research Japan. He said Hachigo's style was "180 degrees away from Ito's," which he described as more "dictatorial."
Ito became president in 2009. His three most recent predecessors had filled the chief executive position for five to eight years.
Still, the timing of the move, coming amid the quality problems, struck some as an indication of diminishing confidence in Ito's leadership.
"There's a strong element in this personnel move of taking responsibility for Honda's recent problems, including the recalls," said Takaki Nakanishi, an auto analyst and head of the Nakanishi Research Institute. "It indicates a change of direction, and that's positive."
The quality problems had shined an uncomfortable spotlight on Ito's efforts to rapidly expand Honda's production capacity while opening up its supply chain, which has been dominated by Japanese component makers with longstanding ties to the company. In some cases, Honda owns minority stakes in the suppliers, a common practice in the Japanese car industry.
Under Ito, Honda bought parts from an increasingly diverse group of suppliers, including U.S. and European companies, and Japanese companies affiliated with rival carmakers like Toyota. Ito also pushed the company's engineers to develop models faster.
Critics worried that the moves could come at the expense of Honda's longstanding reputation for quality. But Ito broadly defended his policies, saying they were necessary to keep Honda competitive.
"I've changed the system, and I think I've opened up a path to stability," he said.
Business on 02/24/2015