Honda President And Executives Take A Pay Cut Due To Recalls

Honda Motors, one of Japan's biggest automakers, has announced that the company's president and 12 other executives will take a pay cut, after the company announced a recall for the Fit Hybrid model, for the fifth time this year.

The recall is due to the fact that the cars have an airbag issue, which could be a major issue in case of an accident. These airbags are supplied by a company called Takata.

Akemi Ando, Honda spokeswoman said "We have inconvenienced many customers, and we're deeply sorry," after announcing the latest Fit recall. "No injury or death has been reported from the defects, as with the previous four recalls," Honda added.

Since the recall was due to quality concerns, the company said that for the next three months, Takanobu Ito, Chief Executive will take a 20 percent cut in pay while other senior executives including chairman Fumihiko Ike and Tetsuo Iwamura, the Ecutive vice-President will have 10 percent cut in pay.

Honda also created a role for the first time to keep an eye out for quality improvements, and appointed Koichi Fukuo, as senior Managing Officer.

The recall was related to two noise related issues in the Fit and Vezel Hybrids as well as two other models. The company is recalling 183 cars from overseas as well.