Suzuki : Disciplinary Actions regarding the Improper Conducts of the Final Vehicle Inspection in the Plants, and the Change in Organisation, Executives, and Personnel

(2) Monthly Remuneration after July 2019

① Representative Director and Chairman

②Representative Director and President

③Representative Director and Vice Chairman

④Directors

⑤Outside Directors

⑥Executive Officers in charge of manufacturing

⑦Other Executive Officers

: Fully waived

: 50% reduction

Suzuki Motor Corporation

28 May 2019

Disciplinary Actions regarding the Improper Conducts of the Final Vehicle Inspection in the Plants,

and the Change in Organisation, Executives, and Personnel

Suzuki Motor Corporation would like to offer our deepest apologies to each and every one of our customers and stakeholders regarding the improper conducts of the final vehicle inspection in the plants.

Regarding the improper conducts, the Company will take the following disciplinary actions against the management and the concerned personnel, as well as make the following change in organisation and personnel, such as establishment of departments for thorough implementation of preventive measures.

1. Disciplinary Actions regarding the Improper Conducts of the Final Vehicle Inspection in the Plants

1. Reductions of Executive Remuneration

(1) Bonus for FY2018

① Representative Directors and Directors

②Executive Officers

: No remuneration for 1 year based on voluntary proposal

: 50% reduction for 6 months

: 40% reduction for 6 months

: 30% reduction for 6 months

: 10% reduction for 3 months

: 30% reduction for 6 months

: 10% reduction for 3 months

Also, there will be 10% reduction for 3 months for the Audit & Supervisory Board Members, based on their voluntary proposal to waive their remuneration.

2) Change in Executive

Director and Managing Officer, Executive General Manager, Manufacturing Hiroaki Matsuura

Retirement of Managing Officer	: 31 May 2019
Retirement of Director	: 27 June 2019 (at the end of the Ordinary General Meeting of Shareholders)

3) Disciplinary Actions of Concerned Personnel

The Company took disciplinary actions against the managers who were concerned in manipulation of vehicle check sheets, as well as those who were responsible for supervising and managing those manipulations, and those who were responsible for supervising and managing the improper conducts of the final vehicle inspection in the plants, based on the employment regulation.

2. Organisation Change

Following organisation change will become effective as of 1 June 2019.

1) Establishment of Inspection Reform Committee

Inspection Reform Committee (Chief Officer: Toshiaki Hasuike, Executive Vice President) will be established to review and manualise the definition of inspection, and enable the new organisation structure to smoothly make measures, such as reviewing inspector's qualification, employment test, and conditions, and introducing facilities to enhance quality, into effect in a short period of time. New and former executives in charge of manufacturing and inspection will become members of the committee to intensively discuss and implement such measures.

2) Securement of Manufacturing Quality and New Establishment of Inspection

Production Engineering should be responsible for securing manufacturing quality that conform to safety regulations in the manufacturing process. In order to enhance quality in the manufacturing process, Quality Group will be newly established in each plant (Kosai, Sagara, Iwata, and Hamamatsu). On the other hand, in order to enhance independency of inspection departments, they will be moved outside the control of Production Engineering, and shifted under Inspection. They will be responsible for examining the consistency of vehicles and conformity to safety regulations.

Conventionally, each plant manager of Kosai, Sagara, Iwata, and Hamamatsu Plants concurrently served as chief inspection engineer. From now on, Kosai Inspection Department, Sagara/Osuka Inspection Department, Iwata Inspection Department, and Hamamatsu Inspection Department will be established under Inspection, and department general manager of each inspection department will be the chief inspection engineer.

3) Construction of Auditing Structure for Final Vehicle Inspection

Final Vehicle Inspection Group and Parts Inspection Group will be shifted under Inspection to thoroughly conduct self-auditing by the Inspection Group.

Inspection Administration Department will be established under Vehicle Regulations and Engineering Administration, and they will audit whether the final vehicle inspections are properly conducted according to vehicle regulations and certification.

Audit Department will become Audit to strengthen its structure, and Engineering/Manufacturing Audit Department will be newly established under Audit to conduct auditing to verify whether the Company is complying with laws and regulations, based on situation of execution of operation in the plants and various auditing methods.

4) Others

• Besides Engineering/Manufacturing Audit Department, Domestic Audit Department, Overseas Audit Department, and Internal Audit Group will be placed under Audit.
• Affiliates Accounting Department under Finance will be abolished upon new establishment of Audit.
• Manufacturing Engineering Department I, II, III, and Motorcycle/Marine & Power Products MFG. ENG. Department will be merged and become Production Engineering Powertrain Department, Production Engineering Stamp & Weld Department, Production Engineering Paint & Assembly Department, and Production Engineering Parts Department. Manufacturing Engineering Department IV will become Production Engineering Control Department.
• Trial Production Department and Tooling Plant will be merged and become Trial Production/Tooling Plant.

3. Appointment, Retirement, and Change in Operational Responsibilities of Directors

[Scheduled as of 27 June 2019]

Toshiaki Hasuike is scheduled to become Director, following an approval at the Ordinary General Meeting of Shareholders scheduled on 27 June 2019. He will also become Executive Vice President and will be in charge of the following operational responsibilities as of 1 June 2019.

(New)	(Name)	(Previous)
Director and Executive Vice President	Toshiaki Hasuike	Senior Managing Officer
in charge of Engineering/Manufacturing/Quality,		Executive General Manager, Automobile Engineering
and Chief Officer,
Inspection Reform Committee

Hiroaki Matsuura is scheduled to retire as Director, upon the end of the Ordinary General Meeting of Shareholders scheduled on 27 June 2019, and will be appointed as Adviser. He will also retire as Managing Officer as of 31 May 2019 and will be in charge of the following operational responsibilities as of 1 June 2019.

(New)	(Name)	(Previous)
Adviser based in Maruti Suzuki India Limited,	Hiroaki Matsuura	Director and Managing Officer in charge of
and Committee, Inspection Reform Committee		Manufacturing Engineering/Manufacturing/Parts,
(term of the committee will be until 27 June		and Executive General Manager, Manufacturing,
2019)		and Department General Manager,
		Trial Production Department

[As of 1 June 2019]

Following change in operational responsibilities will become effective as of 1 June 2019.

(New)	(Name)	(Previous)
Director and Managing Officer	Masahiko Nagao	Director and Managing Officer
in charge of Human Resources,		in charge of Human Resources,
and Department General Manager,		and Department General Manager,
Human Resources Department,		Human Resources Department,
and Executive General Manager,		and Executive General Manager,
Corporate Planning Office,		Corporate Planning Office
and Committee, Inspection Reform Committee

4. Appointment of Audit & Supervisory Board Members

Following personnel are scheduled to become Audit & Supervisory Board Members, following an approval at the Ordinary General Meeting of Shareholders scheduled on 27 June 2019.

(New)	(Name)	(Previous)
Audit & Supervisory Board Member	Toyokazu Sugimoto	Adviser,
		Suzuki Training Center
Audit & Supervisory Board Member	Masato Kasai	Managing Officer
		Group Manager,
		Environment Engineering Group,
		Vehicle Regulations and Engineering Administration
Outside Audit & Supervisory Board Member	Norihisa Nagano	Attorney,
(part-time)		Nagano Law Firm

5. Retirement of Audit & Supervisory Board Members

Following personnel are scheduled to retire as Audit & Supervisory Board Members, upon the end of the Ordinary General Meeting of Shareholders scheduled on 27 June 2019, and will be appointed as Advisers.

(New)	(Name)	(Previous)
Adviser (part-time)	Kunio Nakamura	Audit & Supervisory Board Member
Adviser (part-time)	Eiji Mochizuki	Audit & Supervisory Board Member
Adviser (part-time)	Yasuhiro Yamazaki	Outside Audit & Supervisory Board Member (full-
		time)

6. Appointment of Managing Officers

Following personnel will be appointed as Managing Officers as of 1 June 2019.

(New)	(Name)	(Previous)
Managing Officer	Masahiro Ikuma	Deputy Executive General Manager,
Executive General Manager,		Automobile Engineering,
Automobile Engineering,		and Department General Manager,
and Department General Manager,		Automobile Platform and HMI Development
Automobile Platform and HMI Development		Department
Department
Managing Officer	Masamichi Suzuki	Deputy Executive General Manager,
Deputy Executive General Manager,		Automobile Engineering
Automobile Engineering

Managing Officer	Hisanori Takashiba	Executive General Manager,
Executive General Manager,		Research & Development,
Research & Development,		and Department General Manager,
and Department General Manager,		Advanced Engineering Development Department
Advanced Engineering Development
Department
Managing Officer	Yukihiro Yamashita	Deputy Executive General Manager,
Deputy Executive General Manager,		Automobile Engineering
Automobile Engineering
Managing Officer	Shinichi Akama	Branch Manager,
Branch Manager,		Tokyo Branch
Tokyo Branch,
and Chairman,
Suzuki Motor Sales Tokyo Inc.
Managing Officer	Hisashi Takeuchi	Deputy Executive General Manager
Deputy Executive General Manager		(in charge of Global Administration),
(in charge of Asia Automobile),		Global Automobile Marketing,
Global Automobile Marketing,		and Department General Manager,
and Department General Manager,		India Automobile Department
India Automobile Department
Managing Officer	Yutaka Kikukawa	Executive General Manager,
Executive General Manager,		Legal/IP,
Legal/IP,		and Department General Manager,
and Department General Manager,		Domestic Legal Department
Domestic Legal Department

7. Retirement of Managing Officers

Following personnel will retire as Managing Officers as of 31 May 2019, and will be appointed as Advisers as of 1 June 2019.

(New)	(Name)	(Previous)
Adviser	Kazuo Hakamata	Managing Officer
in charge of Special Missions,		in charge of Manufacturing/Purchasing/Engineering,
Audit		S.I.M. (Indonesia)
Adviser	Shuji Oishi	Managing Officer
in charge of Special Missions,		Deputy Executive General Manager
Global Automobile Marketing		(in charge of Asia Automobile),
		Global Automobile Marketing
Adviser	Shigeyuki Yamamura	Managing Officer
General Manager,		in charge of Human Resources Development
Suzuki Training Center
Adviser	Ichiro Onishi	Managing Officer
in charge of Special Missions,		Executive General Manager,
and Committee, Inspection Reform Committee		Customer Quality Assurance and Service
Adviser	Kazuhiko Ayabe	Managing Officer
in charge of Special Missions,		Executive General Manager,
Audit		Purchasing,
		and Department General Manager,
		Powertrain Purchasing Department
Adviser	Yoshikazu Ozawa	Managing Officer
in charge of Human Resources Structure		based in Maruti Suzuki India Limited
Reform		(in charge of India Human Resources Management)

8. Change in Operational Responsibilities of Managing Officers

Following change in operational responsibilities will become effective as of 1 June 2019.

(New)	(Name)	(Previous)
Managing Officer	Keiichi Asai	Managing Officer
Executive General Manager,		Deputy Executive General Manager,
Inspection,		Manufacturing
and Deputy Chief Officer and Chief Secretariat,
Inspection Reform Committee
Managing Officer	Shigeo Yamagishi	Managing Officer
Executive General Manager,		Executive General Manager,
Vehicle Regulations and Engineering		Vehicle Regulations and Engineering Administration
Administration,
and Deputy Chief Officer,
Inspection Reform Committee
Managing Officer	Kazunobu Hori	Managing Officer
in charge of Engineering Human Resources,		in charge of Engineering Human Resources
and Committee, Inspection Reform Committee
Managing Officer	Taisuke Toyoda	Managing Officer
Executive General Manager,		Executive General Manager,
Audit		Finance,
		and Department General Manager,
		Affiliates Accounting Department
Managing Officer	Shigetoshi Torii	Managing Officer
Executive General Manager,		Deputy Executive General Manager
Purchasing,		(in charge of Manufacturing),
and Department General Manager,		Manufacturing
Powertrain Purchasing Department,
and Committee, Inspection Reform Committee
(term of the committee will be until 27 June
2019)

9. Retirement of Advisers

Following personnel will retire as Advisers as of 31 May 2019.

(New)	(Name)	(Previous)
Retire	Naoki Aizawa	President,
		Suzuki Motor Gujarat Private Limited (India)
Retire	Izumi Oishi	Executive Vice President,
		Suzuki Motor Gujarat Private Limited (India)
Retire	Hiroyasu Uchida	General Manager,
		Suzuki Training Center

10. Change in Personnel of Executive General Managers, Deputy Executive General Managers, Plant Managers of Domestic Affiliates, and President and Plant Managers of Overseas Affiliates

Following personnel will be appointed as of 1 June 2019.

1. Appointment of Executive General Managers and Deputy Executive General Managers [Production Engineering]

(New)	(Name)	(Previous)
Executive General Manager,	Hidetoshi Kumashiro	Plant Manager,
Production Engineering,		Tooling Plant
and Deputy Chief Officer,
Inspection Reform Committee
Deputy Executive General Manager,	Tetsuya Maita	Department General Manager,
Production Engineering (in charge of		Manufacturing Engineering Department I
Powertrain/Plant)

	Deputy Executive General Manager	Kazuo Ichino	General Manager in charge of Project,
	(in charge of Body/Plant),		Manufacturing Engineering Department III
	Production Engineering,
	and Department General Manager,
	Production Engineering Paint & Assembly
	Department
[Customer Quality Assurance and Service]
	(New)	(Name)	(Previous)
	Executive General Manager,	Masahiko Mizushima	Department General Manager,
	Customer Quality Assurance and Service,		Automobile Body and Safety Research Department
	and Department General Manager,
	Automobile Body and Safety Research
	Department
[Finance]
	(New)	(Name)	(Previous)
	Executive General Manager,	Hiroshi Sakamoto	Department General Manager,
	Finance		Audit Department

1. Personnel Change of Department General Managers, Plant Managers, Domestic Affiliates Plant Managers and Overseas Affiliates President and Plant Managers

[Production]

(New)	(Name)	(Previous)
Department General Manager,	Masami Oguri	Group Manager,
Manufacturing Quality Assurance Department		Manufacturing Quality Assurance Group,
		Manufacturing Quality Assurance Department
Department General Manager,	Hiroyuki Kinpara	Plant Manager,
Production Engineering Powertrain Department		Suzuki Seimitsu Plant,
		Suzuki Auto Parts Mfg. Co., Ltd.
Department General Manager,	Tatsuya Motomura	Plant Manager,
Production Engineering Stamp & Weld		Magyar Suzuki Corporation Ltd. (Hungary)
Department
Department General Manager,	Masaru Asahina	Department General Manager,
Production Engineering Control Department		Manufacturing Engineering Department IV
Department General Manager,	Sakuji Hiwara	Department General Manager,
Production Engineering Parts Department		Manufacturing Engineering Department III
Plant Manager,	Makoto Isano	Department General Manager,
Trial Production/Tooling Plant		Automobile Interior Design Department
Department General Manager,	Teruhisa Kadono	Group Manager,
Overseas Manufacturing Department		Automobile Overseas Manufacturing Group I,
		Overseas Manufacturing Department
Plant Manager,	Junichi Otake	Plant Manager,
Sagara Plant,		Gujarat A Plant,
and Plant Manager,		Suzuki Motor Gujarat Private Limited (India)
Sagara Plant,
Snic Co., Ltd.
Plant Manager,	Takayuki Suzuki	Senior Manager,
Iwata Plant		Iwata Plant
Plant Manager,	Yukinori Ishioka	Senior Manager,
Hamamatsu Plant		Engine Plant,
		Hamamatsu Plant

	Plant Manager,	Toshiyuki Hanaoka	Plant Manager,
	Suzuki Seimitsu Plant,		Suzuki Auto Parts Hamamatsu Plant,
	Suzuki Auto Parts Mfg. Co., Ltd.		Suzuki Auto Parts Mfg. Co., Ltd.
	Plant Manager,	Hirochika Suzuki	Manager,
	Suzuki Auto Parts Hamamatsu Plant,		Foundry Group,
	Suzuki Auto Parts Mfg. Co., Ltd.		Manufacturing Engineering Department I
	In charge of Overall Manufacturing,	Haruyuki Kawase	In charge of Gujarat B Plant and Construction of C
	and Plant Manager,		Plant,
	Gujarat B Plant,		Suzuki Motor Gujarat Private Limited (India)
	based in Suzuki Motor Gujarat Private Limited
	(India)
	Plant Manager, Gujarat A Plant,	Tetsuharu Hayasaka	Department General Manager,
	based in Suzuki Motor Gujarat Private Limited		Overseas Manufacturing Department
	(India)
	In charge of Construction of C Plant,	Kazunari Yamaguchi	In charge of India Manufacturing,
	based in Suzuki Motor Gujarat Private Limited		and Plant Manager,
	(India)		Gurgaon Plant,
			Maruti Suzuki India Limited
	In charge of	Yoshitomo Haneda	Plant Manager,
	Engineering/Manufacturing/Quality/Purchasing,		Sagara Plant,
	S.I.M. (Indonesia)		and Plant Manager,
			Sagara Plant,
			Snic Co., Ltd.
	Plant Manager,	Toshio Ishida	Group Manager,
	Cikarang (Powertrain) Plant,		Engine Group,
	based in S.I.M. (Indonesia)		Kosai Plant
	Plant Manager,	Yoshiharu Matsushita	General Manager,
	based in Suzuki (Myanmar) Motor Co., Ltd.		based in Suzuki (Myanmar) Motor Co., Ltd.
	Plant Manager,	Hiroyuki Miura	Manager,
	based in Magyar Suzuki Corporation Ltd.		based in Magyar Suzuki Corporation Ltd. (Hungary)
	(Hungary)
[Inspection]
	(New)	(Name)	(Previous)
	Department General Manager,	Jun Hashimoto	Plant Manager,
	Inspection Department		Hamamatsu Plant
	Department General Manager,	Takashi Suzuki	Senior Manager,
	Kosai Inspection Department		Plant No. 2,
			Kosai Plant
	Department General Manager,	Hiroyoshi Kakizaki	Plant Manager,
	Sagara/Osuka Inspection Department		Iwata Plant
	Department General Manager,	Tsutomu Hoshi	Manager,
	Iwata Inspection Department		Automobile Overseas Manufacturing Group II,
			Overseas Manufacturing Department
	Department General Manager,	Nobuyuki Yamane	Department General Manager,
	Hamamatsu Inspection Department		Motorcycle/Marine & Power Products MFG. ENG.
			Department
[Vehicle Regulations and Engineering Administration]
	(New)	(Name)	(Previous)
	Department General Manager,	Hiroyuki Niwa	General Manager (Supporting Group Manager),
	Inspection Administration Department		Environment Engineering Group

[Audit]
	(New)	(Name)	(Previous)
	Department General Manager,	Naoki Matsuura	Group Manager,
	Domestic Audit Department		Distributor Support Group,
			Domestic Marketing Administration & Promotion
			Department
	Department General Manager,	Motoaki Yamagishi	Group Manager,
	Overseas Audit Department		Secretariat of Audit & Supervisory Board
	Department General Manager,	Koji Yamada	Senior Advisor,
	Engineering/Manufacturing Audit Department		Internal Audit Group,
			Audit Department
[Global Automobile Marketing]
	(New)	(Name)	(Previous)
	President,	Motohiro Atsumi	General Manager,
	Suzuki Motor Gujarat Private Limited (India)		based in Suzuki Motor Gujarat Private Limited (India)
[Automobile Engineering]
	(New)	(Name)	(Previous)
	Department General Manager,	Rikihei Naruse	Group Manager,
	Automobile Interior Design Department		Air Conditioning Design Group,
			Automobile Interior Design Department