Nissan executives taking pay cuts
TOKYO» Nissan Motor Co. chief executive Hiroto Saikawa and other executives of the Japanese automaker are returning a part of their salaries to show remorse over illegal vehicle inspections at the automaker’s plants in Japan.
Saikawa did not say how big the pay cuts would be or who else would take them. He said “voluntary return of a part of his pay” started last month and will continue through March 2018, the end of the fiscal year.
Earlier Friday, Nissan submitted to the government a report on its investigation into the scandal. It said the investigation found workers in training, not authorized to carry out inspections, were routinely conducting the tests, borrowing and using the “hanko,” or traditional Japanese seals that often are used in lieu of signatures, of certified personnel.
The faulty inspections affect only vehicles sold in Japan, not exports. Because of the problems, Nissan is recalling more than a million vehicles for further inspections
Saikawa said it was puzzling why the practice was routine for decades, beginning as early as 1979.
He said plant workers knew what they were doing was illegal and covered it up, including when government regulators came to check on the plants and the inspections. He also said it was “deplorable” that higher management was so out of touch.
“The style of our management was such that we did not fully understand the real situation on the ground,” Saikawa told reporters.
But Saikawa denied the scandal was related to Nissan Chairman Carlos Ghosn’s wellknown management style of cost-cutting drives and ambitious targets.
Ghosn came from Nissan’s French alliance partner Renault SA in 1999 to lead a turnaround at a near-bankrupt Nissan.
Saikawa said managerial changes to fix the deeply embedded inspection problems were coming by March 2018. He declined to elaborate.
Nissan plans to add more inspectors, Saikawa said. He said the company’s investigation found workers were wary of whistleblowing, fearing their complaints would go unheard.