Suzuki chairman to step down on June 29 over fuel economy scam

Japan`s Suzuki Motor Corporation`s chairman Osamu Suzuki on Wednesday said he would step down as the chief executive officer (CEO) of the firm on June 29 over the automaker`s fuel economy-testing scandal.

The company`s vice-president, Osamu Honda will also resign over irregular tests used to measure its vehicles` fuel consumption, Japan`s fourth largest automaker announced.

Osamu Suzuki, 86, who has been both chairman and the CEO said he would step aside as the chief executive. Honda, 66, will also retire on June 29, when the next annual shareholders` meeting is scheduled, EFE news reported.

"We take irregularities (in fuel economy-testing) seriously and want to clarify who is to be held responsible in management. We are extremely sorry," the Kyodo news agency cited the chairman as saying at a press conference.

The company announced in a statement that its executives also will take a pay cut due to the fuel-testing irregularities.

Suzuki`s salary will be cut 40% for six months starting July, while that of his son Toshihiro Suzuki, the company`s president, will see a 30% cut during the same period. The irregularities were reported on May 18 and involved around 2.14 million vehicles sold in Japan.

Those automobiles passed fuel consumption tests dating back to 2010 that did not fully comply with Japanese regulations regarding aerodynamic resistance and rolling resistance.