Honda’s CEO Defies Critics and Defends Reforms

Honda Motor Co. CEO Takanobu Ito will fight to extend his job two years, defying critics who say his overhaul of the company's traditional supply chain is hurting the brand, sources tell Reuters.

For the past three years Ito has been disrupting Honda's cozy keiretsu network of connected suppliers by shopping for new technologies and lower prices elsewhere. His efforts have boosted Honda's share price and more than tripled operating income.

But critics, including some former Honda top executives, say Ito is moving too fast. They point to an outbreak of recalls, such as those involving Takata Corp. airbag inflators, as evidence that his rush to revamp the company's supply chain is compromising quality.

Ito has rejected suggestions that he step aside, vowing to stay on until he completes the reforms, according to Reuters.