Katsuhiko Kawasoe
Encyclopedia
is a former President and Chief Executive Officer of Mitsubishi Motors
.
After working in the Accounting, Personnel Planning, and Labor Relations departments, he was appointed Executive Vice President of Mitsubishi Motor Manufacturing of America, General Manager of the Nagoya production plant, and General Manager of the Office of Passenger Car Production. He was appointed to the board of Mitsubishi Motors in 1995, and became President on November 27, 1997 following the resignation of his predecessor Takemune Kimura
, who was forced to step down after admitting involvement in a racketeering scandal. At the time the company was suffering the effects of the East Asian financial crisis
, and Kawasoe's first year in charge would be marked by a ¥
25.7 billion net loss
and the suspension of dividend
payments to shareholders. In response, Kawasoe proposed a recovery strategy of staff cuts, rationalisation of car platforms, and the closure of plants in Thailand
and New Zealand
. However, the plan was only partially successful, and following another year without dividend payments in 1999, Mitsubishi was forced to seek external support when it sold a controlling 34 percent stake to DaimlerChrysler
for €
2.1 billion on March 27, 2000.
In June 2000, Kawasoe was forced to admit that Mitsubishi Motors and its Fuso Truck and Bus subsidiary had systematically covered up reports of vehicle defects from the Japanese Transport Ministry since 1977. The effect on the company's stock was immediate and precipitous, falling 13 percent on the news. As further revelations of "one of the largest corporate scandals in Japanese history" emerged over the summer the stock continued to plummet until Kawasoe was forced to resign on November 1, 2000. For his final month he took a 40 percent pay cut, along with dozens of other executives who suffered similar punishments.
Kawasoe's involvement in Mitsubishi's troubles was not to end after his resignation. Following two fatal accidents involving Fuso trucks in 2002 and 2004, he and five other former executives were arrested by police investigating the deaths and subsequently charged with professional negligence
. He, along with the other executives, was convicted and received a suspended sentence
.
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...
.
After working in the Accounting, Personnel Planning, and Labor Relations departments, he was appointed Executive Vice President of Mitsubishi Motor Manufacturing of America, General Manager of the Nagoya production plant, and General Manager of the Office of Passenger Car Production. He was appointed to the board of Mitsubishi Motors in 1995, and became President on November 27, 1997 following the resignation of his predecessor Takemune Kimura
Takemune Kimura
was a Japanese businessman and former president of Mitsubishi Motors. Prior to his promotion in June 1995 he spent 37 years at the company's Mizushima manufacturing facility in Kurashiki, Okayama, before becoming president of the Pajero Manufacturing Co. subsidiary in Sakahogi, Gifu. He was hired...
, who was forced to step down after admitting involvement in a racketeering scandal. At the time the company was suffering the effects of the East Asian financial crisis
East Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion....
, and Kawasoe's first year in charge would be marked by a ¥
Japanese yen
The is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...
25.7 billion net loss
Income statement
Income statement is a company's financial statement that indicates how the revenue Income statement (also referred to as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that...
and the suspension of dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
payments to shareholders. In response, Kawasoe proposed a recovery strategy of staff cuts, rationalisation of car platforms, and the closure of plants in Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. However, the plan was only partially successful, and following another year without dividend payments in 1999, Mitsubishi was forced to seek external support when it sold a controlling 34 percent stake to DaimlerChrysler
DaimlerChrysler
Daimler AG is a German car corporation. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm...
for €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
2.1 billion on March 27, 2000.
In June 2000, Kawasoe was forced to admit that Mitsubishi Motors and its Fuso Truck and Bus subsidiary had systematically covered up reports of vehicle defects from the Japanese Transport Ministry since 1977. The effect on the company's stock was immediate and precipitous, falling 13 percent on the news. As further revelations of "one of the largest corporate scandals in Japanese history" emerged over the summer the stock continued to plummet until Kawasoe was forced to resign on November 1, 2000. For his final month he took a 40 percent pay cut, along with dozens of other executives who suffered similar punishments.
Kawasoe's involvement in Mitsubishi's troubles was not to end after his resignation. Following two fatal accidents involving Fuso trucks in 2002 and 2004, he and five other former executives were arrested by police investigating the deaths and subsequently charged with professional negligence
Professional negligence
In the English law of tort, professional negligence is a subset of the general rules on negligence to cover the situation in which the defendant has represented him or herself as having more than average skills and abilities. The usual rules rely on establishing that a duty of care is owed by the...
. He, along with the other executives, was convicted and received a suspended sentence
Suspended sentence
A suspended sentence is a legal term for a judge's delaying of a defendant's serving of a sentence after they have been found guilty, in order to allow the defendant to perform a period of probation...
.