TOKYO, June 26 - Honda Motor's chief executive, Toshihiro Mibe, received shareholder backing for his return to the company's board during the automaker's annual meeting on Friday after issuing an apology for the company's weak financial showing.
At the opening of the meeting, Mibe addressed shareholders directly about the firm's recent results. In his remarks he said:
"I would like to express my deepest apologies to our shareholders for the significant concern and inconvenience caused by the net loss recorded in the previous fiscal years financial results,"
The statement came as Honda works to rebound from what the company described as costly strategic missteps. Last month the automaker reported its first annual loss in seven decades, a setback the company attributed in part to more than $9 billion in restructuring costs related to its electric-vehicle business and to competitive pressures from Chinese rivals.
Following Mibe's remarks, shareholders voted to reappoint him to the board. They also approved the company's other nominees for board seats - ten in total - which included nine directors who were up for reappointment and one new director.
The approvals mark a continuation of existing leadership despite the financial downturn the firm has reported. The company has framed the recent results as the consequence of strategic decisions tied to its electric-vehicle operations and external competitive dynamics, while leaning on governance continuity through the board vote.
Shareholder endorsement of the slate of directors gives the company's leadership the mandate to pursue recovery efforts outlined internally, while the balance of restructuring charges and market competition remains central to the company's near-term financial outlook.
Key points
- Toshihiro Mibe apologised publicly for Honda's recent net loss and was reappointed to the board.
- Honda reported its first annual loss in seven decades, citing more than $9 billion in EV-related restructuring costs and competition from Chinese rivals.
- Shareholders approved ten additional board nominees - nine reappointments and one new director - maintaining the company's current governance team.
Risks and uncertainties
- Ongoing financial pressure from the large EV restructuring charge - impacts the automotive and electric-vehicle sectors as well as investors in Japanese equities.
- Competitive dynamics with Chinese automakers could continue to affect market share and margins - relevant to the global auto and EV supply chains.
- Execution risk around recovery from strategic missteps - governance continuity does not remove uncertainty about whether planned corrective actions will restore profitability.