Takanobu Ito is determined to fend off moves for his ouster as the chief executive of Honda Motor Co. and is even looking to extend his term by another two years, four people privy with the matter told Reuters. Ito is said to have upset former Honda executives as well as it long-term local suppliers by looking for global suppliers to cut its costs.
One retired executive at Honda said that Ito’s moves have thrown group suppliers into disarray, adding by the way things are going, these local suppliers could become subcontractors with “no technologies of their own." Two of Reuters’ sources said that that despite the calls for his removal, he is determined to see his reforms through.
A Honda divisional head told the news agency that since the start of 2015, Honda has been operating on the assumption that Ito will continue as CEO, adding that the top honcho has a 70-percent chance of keeping his job.
A former senior Honda executive remarked that Ito is determined to keep going as CEO, and they are “generally okay with that."
Ito’s moves have included a focus on vehicle electrification and the carmaker has courted global suppliers like Robert Bosch, Continental and TRW Automotive – thereby bypassing its local suppliers such as Keihin Corp. and Showa Corp.