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by Tim Beissmann

The president of Honda Motor Co. and 12 other top executives will take unprecedented pay cuts after the company announced the fifth recall for its new Jazz Hybrid in just 12 months.

Reuters reports the latest recall affects 425,000 Honda Jazz Hybrids (badged Fit Hybrid in other markets) and other models in Japan, and relates to two noise-related defects. The Jazz’s petrol-electric sibling, the Vezel/HR-V Hybrid, and some petrol Jazz and N-WGN models have also been recalled to address the issue.

The recall comes as Honda faces lawsuits over crashes involving airbags supplied by Takata Corp. The airbags have been linked to four deaths in Honda vehicles and are part of a multi-million-vehicle recall affecting a number of car makers around the world.

As a result of the recent recall activity, Honda confirmed CEO Takanobu Ito will take a 20 per cent pay cut over the next three months, while other senior executives, including executive vice president Tetsuo Iwamura and chairman Fumihiko Ike, will be docked 10 per cent over the same period.

Honda has also created a new corporation-wide quality improvement role in the wake of the recalls, which has been filled by senior managing officer Koichi Fukuo.


The Jazz Hybrid was first recalled in October last year – just one month after its launch – over an issue with the controls of its seven-speed dual-clutch automatic transmission.

Honda says no injuries or deaths have been reported in relation to any of the five Jazz Hybrid recalls. It says the overall cost of the recalls stands at 16.5 billion yen ($175 million).

Honda Australia plans to launch the new-generation Jazz Hybrid in our market in the second half of 2015.