Honda has reportedly penalized its top executives and created a new post responsible for quality assurance.
Reacting to the fifth recall of the all-new Fit, Honda’s board has ordered CEO Takanobu Ito to take a 20-percent pay cut. A dozen of his peers will take a smaller 10-percent reduction, according to Reuters.
The company recently commissioned a third-party investigation to determine if it improperly handled the Takata airbag recall. The company has been accused of failing to properly report fatalities and injuries related to exploding airbag inflators, potentially hindering earlier identification of the widespread problem.
The Japanese automaker also faces several lawsuits alleging the defective airbag inflators caused permanent facial disfigurement. The faulty components have been linked to at least four deaths, all in Honda vehicles.
The airbag problems were not mentioned in the announcement of a pay cut and appointment of Senior Managing Officer Koichi Fukuo to direct quality-focused initiatives throughout the company.
“We have inconvenienced many customers, and we’re deeply sorry,” said spokeswoman Akemi Ando in an apology accompanying the latest Fit recall.