Honda to appoint new president in June to revive business

Business Materials 23 February 2009 12:35 (UTC +04:00)

Honda Motor Co announced Monday that it would appoint a new president in June to deal with a sales slowdown caused by the yen's surge against other major currencies and the dwindling consumer appetite amid the global economic downturn, dpa reported.

Japan's second-largest carmaker plans to promote Senior Managing Director Takanobu Ito to president. The decision was expected to be approved at a shareholders' meeting in June, Honda said.

The 55-year-old Ito joined the company in 1978 and has worked in research and development as an engineer. He was appointed to the Board of Directors in June 2000 after becoming president of Honda R&D Co in June 2003. Ito has served as a senior managing director since June 2007.

Honda revised downward its earnings projection for the business year that ends in March, to a net profit of 80 billion yen (860.24 million dollars), down 86.7 per cent from the previous year.

Facing its worst slump ever, Toyota Motor Co also plans to appoint Akio Toyoda, 52, as its new president.

A grandson of the company's founder, Toyoda would be the first member of the founding family to head the company in 14 years. The decision will be finalized at a board meeting scheduled for June.