Japan's Honda names Fukui President

TOKYO, April 22, 2003; Reuters reports that Honda Motor Co, Japan's second-biggest automaker, on Tuesday named senior managing director Takeo Fukui as its new president, replacing Hiroyuki Yoshino.

A change at the top had been rumoured for some time since Yoshino has been at the helm for about four years, the usual tenure for a president at Honda.

"It's no surprise given that Mr Fukui has been a central figure in shaping the way the Honda programme is right now," said Christopher Richter, analyst at HSBC Securities.

"I doubt if we are going to see any big changes at Honda as a result. The main challenge for Fukui is guiding Honda while there are concerns about the U.S. market."

Fukui, 58, currently heads Honda's research and development unit, which often selects the president.

Fukui served as the president of the company's U.S. production unit, Honda of America Manufacturing Inc, between 1996 and 1998.

He also worked in the area of motorcycle racing, devoting almost a decade to Honda's racing success, including the maker's first 500 cc class world championship in 1983.

Yoshino, 63, will become a director and adviser to the company.

The changes will take effect after ratification by the board following a shareholders' meeting in late June.

Honda's shares were down 2.34 percent at 3,760 yen, slightly underperforming a 2.11 percent decline in the benchmark Nikkei average (^N225 - News).

Analysts said they would be watching in particular to see what approach the new president takes towards the company's under-performing domestic operations.