Mazda CEO Steps Down Amid Slowing US Market Growth

Mazda Motor Corp. Representative Director President and CEO Masamichi Kogai is stepping down after five years. The move comes amid the company’s slowing growth in the U.S. market. He is also stepping down amid stiff competition in China.

Mazda announced Friday that following Kogai’s departure from the top position, Akira Marumoto, the executive vice president of the company’s operations in the U.S., will be taking the helm. The change is scheduled to be ratified at Mazda’s upcoming annual shareholder meeting on June 26.

In his five-year tenure, Kogai orchestrated Mazda’s deeper ties with fellow Japanese automotive manufacturer Toyota Motor Corp. Last August, Kogai announced alongside Toyota CEO Akio Toyoda the tightening of the ties between the two companies. The gesture meant both companies are sharing technologies and the establishment of their capital alliance. It also enabled Mazda to join Toyota and group supplier Denso Corp. in developing electric vehicle platforms and parts together.

However, the company’s stock also reportedly declined during his tenure because Mazda struggled to catch up with rapidly advancing technologies in the industry and intensifying competition against its rivals, Bloomberg reports.

After vacating the chief post, Kogai will remain in the company as the Representative Director and Chairman of the Board. On the other hand, Marumoto is passing on his post as Representative Director Executive Vice President Assistant to President to Kiyoshi Fujiwara. His other post as Oversight of Operations in the Americas and Administrative Domain will be split to two other officials.

The management shakeup comes amid the auto industry’s shift toward self-driving, connected and electric cars and the rise of the Chinese market’s importance over that of the U.S. market. As the new CEO, Marumoto is tasked to lead the company to reaching its goal of boosting annual sales to two million cars by 2024. At present, Mazda sells around 1.6 million cars per year.