Subaru Chief Apologizes to Shareholders for Scandals

June 22, 2018

Tokyo- Speaking at a general meeting of its shareholders on Friday, Subaru Corp. President Yasuyuki Yoshinaga apologized for recent inspection and data scandals that have plagued the Japanese automaker.

"We offer a heartfelt apology for repeatedly causing inconvenience and anxiety," Yoshinaga said at the meeting, which was open to reporters. He vowed that the company will do all it can to prevent similar misconduct and restore trust.

During a question and answer session with shareholders, Yoshinaga revealed that the company has scrapped the post of adviser, which was given to retired top leaders of the company.

A number of scandals at the automaker have come to light since October, including manipulation of vehicle fuel economy and emission data and inspections of finished vehicles by unauthorized workers.

To clarify the current management's responsibility for the scandals, the automaker's executive board has already decided on the replacement of Yoshinaga with Corporate Executive Vice President Tomomi Nakamura as president and other appointments to launch a new management team.

At the shareholders' meeting, a proposal for an associated reshuffle of board members was approved. Yoshinaga will become chairman without the right to represent the company.

Among other major Japanese companies that have recently been hit by scandals, Mitsubishi Materials Corp. <5711> also held a general shareholders' meeting on Friday while shutting reporters out of the meeting.

A series of product quality data falsifications at Mitsubishi Materials subsidiaries have come to light since November. Furthermore, it was revealed on June 8 that a parent company factory had shipped Japan Industrial Standards-certified products without conducting required inspections.

Akira Takeuchi is set to resign as Mitsubishi Materials president to take the blame for the misconduct in the entire group, upon approval of a management board reshuffle plan by the shareholders.

Executive Vice President Naoki Ono will succeed Takeuchi, who will become chairman of the company. Jiji Press