Honda names new president

TOKYO -- Honda named Takanobu Ito, an expert in auto development with experience in the U.S., as its new president Monday, in an apparent effort to aim for a turnaround under fresh, younger leadership.

Ito, 55, senior managing director overseeing auto operations, replaces Takeo Fukui, who is stepping down as president, Japan's No. 2 automaker said in a statement.

The move follows a similar change at the top at bigger Japanese rival Toyota, who recently named Akio Toyoda, a member of the founding family, replacing Katsuaki Watanabe.

The change at Honda, part of a minor reshuffling of its board, still needs shareholders' approval at a meeting in June.

Fukui and Ito were scheduled to give a news conference later in the day at Honda's Tokyo headquarters, Honda said.

There had been some speculation that Fukui, 64, who has already served six years as president, may step down. But the timing was uncertain as Honda, like other automakers, are battling a serious downturn in global demand.

Through Ito's appointment, Honda appears to be sending a message of its determination to turn a new leaf and press ahead with technological innovations — its longtime strength — in battling the global slump and aim for a turnaround.

Ito had already been scheduled to head the research and development unit of Honda in April. With the latest decision, if approved, he will also head overall Honda. Fukui will become an adviser and remain on the board.

Honda, which makes the Insight hybrid and Accord sedan, has fared relatively better than Toyota, the world's biggest automaker, in riding out the downturn, partly because Honda doesn't make large trucks and tends to be more nimble.

But even Honda is also hurting and has been curbing production and reducing workers at its plants.

Honda, which saw its October-December profit plunge 90%, is expecting 80 billion yen ($856 million) in profit for the fiscal year ending March 31. Earlier, it had projected a 185 billion yen profit.

The strong yen, which erodes the earnings of exporters, has also cutting profits at Japanese automakers, including Honda.