Subaru Fuel-Mileage Scandal Leaves Top Boss With a Big Mess To Clean Up
Subaru Japan has been plagued by a recent fuel mileage cheating scandal and it forces an early exit for President Yasuyuki Yoshinaga. Speaking at a general meeting of its shareholders on Friday, the top Subaru boss apologized for recent inspection and data scandals that have plagued the Japanese automaker. Then he left for his new job to help mop up the mess.
According to a report from The Japan Times, Yoshinaga said at the meeting, “We offer a heartfelt apology for repeatedly causing inconvenience and anxiety.” He vowed the automaker will do all it can to prevent similar misconduct and restore trust. Subaru stock has dropped and sales on their all-wheel-drive vehicles have slipped in Japan, while Subaru of America sales has not been affected.
Yoshinaga was supposed to serve a dual role as CEO and retain the right to represent the company. But things changed for the Subaru chief June 5 when the automaker owned up to employees improperly recording fuel economy and emissions data. The number of vehicles affected by the new violations is 927 bringing the total number of affected vehicles to 1,551.
Subaru inaugurated a fresh management team Friday with Tomomi Nakamura officially taking over as president and CEO from Yoshinaga who was supposed to bring his successor steadily up to speed in terms of personal connections and other elements, but the report says the succession was unexpectedly accelerated.
Subaru Corp’s new executive lineup was ratified at the packed shareholders meeting. Yoshinaga spent the first 10 minutes outlining and apologizing for the raft of scandals. Yoshinaga is out, and Nakamura is in as the new Subaru boss. He will now try to repair the damage done to Subaru’s image.
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Photo credit: Subaru Corporate