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Honda Plans Changes to Top Management, and Expects Quarterly Loss

Takeo Fukui will be an advisor, as Takanobu Ito succeeds him as President & Chief Executive Officer.

by on Feb.23, 2009

Ito, left, takes over from Fukai this June.

Ito, left, takes over from Fukui this June.

Takeo Fukui, Honda Motor’s President & Chief Operating Officer, will be replaced this summer by Takanobu Ito, a 30-year Honda veteran, it was announced earlier today in Tokyo. Ito, currently Senior Managing Director, will become the seventh CEO of Honda Motor in late June 2009, pending final approval of the board of directors.

The latest results from Japan’s second largest auto maker saw net sales drop globally 16% to 2.533 billion Yen ($1=97 Yen at current exchange rates), and operating income dive 63% to 174 billion Yen in its 3rd quarter of fiscal year 2009 ending last December 31st. Net income compared with same quarter in 2008 declined by an order of magnitude from 200 billion Yen to a mere 20 billion.

Last month Honda reduced its forecast to a full-year profit of 80 billion Yen, and said it would dismiss 4300 temporary workers in Japan. Honda expects to report a loss for the current quarter. And more cutbacks are coming in the U.S. as well.

Still, the company is doing better than its two major Japan-based rivals, Toyota and Nissan. Toyota stock lost half of its value in 2008. And Both Toyota and Nissan have announced they expect to lose money in FY 2009.