Japanese carmaker Honda said Monday that its president was stepping down as the firm grapples with an exploding air bag crisis linked to at least five deaths that also led to the recall of millions of vehicles. The firm said the move was squarely aimed at strengthening its global expansion strategy with a younger leader.
But the departure of company veteran Takanobu Ito, 61, comes at a difficult time for Japan's number-three automaker and for parts maker Takata, whose air bags are at the centre of the scandal. The maker of the Civic sedan said Ito, who joined Honda in 1978, would remain on its board, while managing director Takahiro Hachigo, 55, would step into the top job after a shareholders' meeting in June.
At a press conference in Tokyo, Ito painted the switch as crucial to Honda's "next big leap forward". "I decided to hand the post over to Hachigo as I thought it would be a good time for the company to be united and take on new challenges under new and younger leadership," he told reporters. The crisis has sparked the recall of more than 20 million vehicles world-wide by 10 major automakers.
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