As Tire Review first reported last week, top executives at Toyo Tire & Rubber Co. will resign their posts in the aftermath of a controversy where the company installed defective earthquake shock absorbers in dozens of buildings in Japan, including schools and hospitals.
Today we learned that several other executives and are also being pushed out, including the tiremaker’s former president and CEO, but one top officer is only being demoted.
Already set to leave Toyo is Akira Nobuki, chairman, who will retire as of July 1. Nobuki will have to return 50% of the pay he received since July 1, 2014. Takuji Yamamoto, Toyo’s president, head of the company’s tire group and general manager of its North America unit, will resign at a shareholders meeting this fall.
Tetsuya Kuze, who was previously reported as leaving Toyo, has been demoted to senior corporate officer, but retains posts as general manager of both administration and corporate planning, and as part of the corporate purchasing division. Kuze is also taking a 30% salary reduction over the next six months.
Also retiring as of July 1 will be Toshiaki Okazaki, director; Gentaro Aoki, advisor; Haruhiro Shinsho, advisor; and Kenji Nakakura, executive emeritus and former president and CEO. Shinso will return 30% of the pay he received since July 1, 2014, and Nakakura will return 50% of the pay he earned since Jan. 1 of this year. Neither Aoki nor Okazaki were ordered to return any salary.
Kazuyuki Ito will become an advisor after resigning his posts as director and senior corporate officer and taking a 30% pay reduction for six months. Sadao Ichihara is resigning from his position as director, but will remain a senior corporate officer.
Data falsification by the company led to rubber-laminated bearings that failed to meet the Japan Ministry of Land, Infrastructure and Transport criteria to be installed in buildings. The product data falsification came to light when the government withdrew its certification for the shock absorbers, Kyodo reported.
A team of outside lawyers investigating the matter determined the falsification was due the corporate culture, and advised a restructure in the company, according to the newspaper.
