Mark Renders, Getty Images
Industryweek 26793 121917 Subaru Logo Markrenders2

Subaru CEO Returns Pay After Inspection Scandal

Dec. 19, 2017
Subaru recalled 395,000 vehicles from its domestic market last month after announcing in October that it had allowed uncertified staff to conduct inspections of some vehicles.

TOKYO — The CEO of Japanese automaker Subaru said Tuesday that he and all other company executives would return part of their pay until next March following an inspection scandal at the company.

“All executives will voluntarily return part of their pay,” CEO Yasuyuki Yoshinaga told reporters at a news conference. 

Subaru recalled 395,000 vehicles from its domestic market last month after announcing in October that it had allowed uncertified staff to conduct inspections of some vehicles. Nine models — including a sports car that Subaru manufactures for Toyota — were recalled, but vehicles sold overseas were not affected.

The recall is estimated to have cost 20 billion yen ($177.40 million), according to the automaker.

A third-party investigative report submitted by Subaru to the government on Tuesday said the inspections by uncertified workers might have started about three decades ago in the 1980s. The report also said that workers concealed the practice from authorities during their visits to factories. 

The scandal came to light after the government ordered Japan’s automakers to check their inspections following the recall of some 1.2 million cars by Nissan in October. Nissan said the vehicles had failed to meet domestic rules on final inspections.

The embarrassing admissions have hurt Japan’s auto industry, once the envy of the world for its just-in-time manufacturing and near-obsessive focus on constant improvement.

Copyright Agence France-Presse, 2017

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Electric Vehicles Spark New Opportunities in the Automotive Industry

Dec. 4, 2023
Automakers have increased plans to produce Electric Vehicles to meet customer demand for low emissions. With this radical shift, new opportunities and challenges for the auto ...

Navigate Complex Cybersecurity Requirements With Purpose-Built Technology Solutions

Dec. 6, 2023
The CMMC represents a critical mandate from the U.S. DOD. Aerospace & Defense manufacturers that handle controlled unclassified information (CUI) must comply with CMMC requirements...

Goodridge Boosts Productivity & Saves Costs by Moving to the Cloud!

Dec. 4, 2023
With Infor's cloud solutions, Goodridge has been able to greatly increase overall productivity, cost savings, data visibility, and automation. This case study discusses the many...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!