Honda Motor Co. plans to make several changes in its board in order to streamline decision-making. This includes removing the head of American Honda from its board and reducing the number of directors from 20 to 12. The changes are estimated to take effect in June, pending approval during the shareholder meeting for that month.
The overhaul in Honda’s management removes 9 executives from the board and adds one new member. In a statement, Honda said that most of those executives leaving the board will transfer to more hands-on positions as operating officers. One of those leaving is Tetsuo Iwamura, president of American Honda Motor Co., the Japanese brand's U.S. subsidiary.
Iwamura will remain in his position as head of American Honda and will retain his current title of senior managing director at the parent company in Japan.
Honda spokesman Keitaro Yamamoto said that doing this will hasten the decision making process and it will enable the regional operations people to “concentrate on their regional responsibilities better." Other regional chiefs on the board will cease to have board duties too.
Three of the executives leaving the board in June, including current CFO Yoichi Hojo, will serve as presidents at Honda-affiliated companies or suppliers.
Hojo will be the chief of suspension-maker Showa Corp. Replacing him as top financial boss is Fumihiko Ike, who will be promoted to senior managing director, from managing director.
Upon leaving the board, Operating Officer Tsuneo Tanai, now COO in charge of Honda's automobile operations, will be appointed president of fuel-system supplier Keihin Corp. [via autonews - sub. required]