Subaru Changes President After Inspection Scandal

Japanese automaker Subaru Corp. said it was replacing its president and changing its board after an inspection failure that emerged last year and affected the reputation of Japan Inc. for adequate quality control.

Corporate Executive Vice President Tomomi Nakamura will replace Yasuyuki Yoshinaga as president upon approval at the meeting of shareholders in June, the company said, adding that three more board members will step down and be replaced.

Meanwhile, Yoshinaga will remain as Chief Executive and will take over as the company’s chairman.

The board members who are near to retirement will also keep some roles with the company, while the former chairman of the board will be positioned as a special adviser.

Subaru disclosed in October that unqualified employees had made final examinations of new cars for the domestic market for decades. The defective inspections transgressed transport ministry norms which resulted in a recall of 395, 000 vehicles.

“I want to draw a line under the final inspection issue,” Yoshinaga said in a report.

In December, Subaru shares dropped to their lowest since July 2016 after it said it was investigating whether mileage readings may have been counterfeit during final tests.

Last year, Japan’s manufacturing industry was hit by numerous scandals. Nissan Motor confessed that it had improper final inspection procedures, while Kobe Steel, Mitsubishi Materials Corp, and Toray Industries, all are main suppliers of products to global manufacturers, disclosed there is product data fabrication in their company.

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