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Published on : Jul 06, 2015

The new CEO of Honda Motor Co., Takahiro Hachigo, plans to reboot the failing automaker by devising development of exciting cars, staying clear of numerical targets to be achieved, and to use the company’s overseas production capacity to the fullest to absorb global overcapacity.

Addressing the first news conference after taking office, new CEO said Honda will be open to joint ventures and alliances with rival automakers in order to achieve goals such as share next-generation technologies and cost sharing.

The CEO further added, that he planned to create a novelty car and that he did not want to revive the goal set by his predecessor to chase and achieve sales of 6 million vehicles globally by the end of March 2017. He further said, the company would aim to develop innovative products that would satisfy customers’ dreams and not aim to achieve set sales numbers.

Hachigo has inherited the position from outgoing CEO Takanobu Ito, who decided to step down to take up advisor’s position after a range of problems and unsuccessful drive to achieve global sales target of 6 million units. The newly appointed CEO has been positioned in a company which is in recovery mode. 

In the month of June, Honda presented a revised earnings statement which included a 19% decline in operating profit for the fiscal ending March 31, 2015. Honda had to take the blow on account due to miscalculation of quality costs associated with recalls of Takata airbags.

Hachigo, who by professional background is a product development engineer having extensive overseas experience has worked in North America, China, and Europe and carries with him unique experience of the automaker’s needs in prominent growth markets.

He further added to have always worked on front lines, the reason for him being appointed as the president.