Disciplinary Actions regarding the Improper Conducts of the Final Vehicle Inspection in the Plants,
and the Change in Organisation, Executives, and Personnel

Suzuki Motor Corporation would like to offer our deepest apologies to each and every one of our customers and stakeholders regarding the improper conducts of the final vehicle inspection in the plants.
Regarding the improper conducts, the Company will take the following disciplinary actions against the management and the concerned personnel, as well as make the following change in organisation and personnel, such as establishment of departments for thorough implementation of preventive measures.

1. Disciplinary Actions regarding the Improper Conducts of the Final Vehicle Inspection in the Plants

1) Reductions of Executive Remuneration

(1) Bonus for FY2018

(2) Monthly Remuneration after July 2019

Also, there will be 10% reduction for 3 months for the Audit & Supervisory Board Members, based on their voluntary proposal to waive their remuneration.

2) Change in Executive

Director and Managing Officer, Executive General Manager, Manufacturing
Hiroaki Matsuura

3) Disciplinary Actions of Concerned Personnel

The Company took disciplinary actions against the managers who were concerned in manipulation of vehicle check sheets, as well as those who were responsible for supervising and managing those manipulations, and those who were responsible for supervising and managing the improper conducts of the final vehicle inspection in the plants, based on the employment regulation.

2. Organisation Change

Following organisation change will become effective as of 1 June 2019.

1) Establishment of Inspection Reform Committee

Inspection Reform Committee (Chief Officer: Toshiaki Hasuike, Executive Vice President) will be established to review and manualise the definition of inspection, and enable the new organisation structure to smoothly make measures, such as reviewing inspector's qualification, employment test, and conditions, and introducing facilities to enhance quality, into effect in a short period of time. New and former executives in charge of manufacturing and inspection will become members of the committee to intensively discuss and implement such measures.

2) Securement of Manufacturing Quality and New Establishment of Inspection

Production Engineering should be responsible for securing manufacturing quality that conform to safety regulations in the manufacturing process. In order to enhance quality in the manufacturing process, Quality Group will be newly established in each plant (Kosai, Sagara, Iwata, and Hamamatsu). On the other hand, in order to enhance independency of inspection departments, they will be moved outside the control of Production Engineering, and shifted under Inspection. They will be responsible for examining the consistency of vehicles and conformity to safety regulations.
Conventionally, each plant manager of Kosai, Sagara, Iwata, and Hamamatsu Plants concurrently served as chief inspection engineer. From now on, Kosai Inspection Department, Sagara/Osuka Inspection Department, Iwata Inspection Department, and Hamamatsu Inspection Department will be established under Inspection, and department general manager of each inspection department will be the chief inspection engineer.

3) Construction of Auditing Structure for Final Vehicle Inspection

Final Vehicle Inspection Group and Parts Inspection Group will be shifted under Inspection to thoroughly conduct self-auditing by the Inspection Group.
Inspection Administration Department will be established under Vehicle Regulations and Engineering Administration, and they will audit whether the final vehicle inspections are properly conducted according to vehicle regulations and certification.
Audit Department will become Audit to strengthen its structure, and Engineering/Manufacturing Audit Department will be newly established under Audit to conduct auditing to verify whether the Company is complying with laws and regulations, based on situation of execution of operation in the plants and various auditing methods.

4) Others

• - Besides Engineering/Manufacturing Audit Department, Domestic Audit Department, Overseas Audit Department, and Internal Audit Group will be placed under Audit.
• - Affiliates Accounting Department under Finance will be abolished upon new establishment of Audit.
• - Manufacturing Engineering Department I, II, III, and Motorcycle/Marine & Power Products MFG. ENG. Department will be merged and become Production Engineering Powertrain Department, Production Engineering Stamp & Weld Department, Production Engineering Paint & Assembly Department, and Production Engineering Parts Department. Manufacturing Engineering Department IV will become Production Engineering Control Department.
• - Trial Production Department and Tooling Plant will be merged and become Trial Production/Tooling Plant.

3. Appointment, Retirement, and Change in Operational Responsibilities of Directors

[Scheduled as of 27 June 2019]
Toshiaki Hasuike is scheduled to become Director, following an approval at the Ordinary General Meeting of Shareholders scheduled on 27 June 2019. He will also become Executive Vice President and will be in charge of the following operational responsibilities as of 1 June 2019.

Hiroaki Matsuura is scheduled to retire as Director, upon the end of the Ordinary General Meeting of Shareholders scheduled on 27 June 2019, and will be appointed as Adviser. He will also retire as Managing Officer as of 31 May 2019 and will be in charge of the following operational responsibilities as of 1 June 2019.

[As of 1 June 2019]
Following change in operational responsibilities will become effective as of 1 June 2019.

4. Appointment of Audit & Supervisory Board Members

Following personnel are scheduled to become Audit & Supervisory Board Members, following an approval at the Ordinary General Meeting of Shareholders scheduled on 27 June 2019.

5. Retirement of Audit & Supervisory Board Members

Following personnel are scheduled to retire as Audit & Supervisory Board Members, upon the end of the Ordinary General Meeting of Shareholders scheduled on 27 June 2019, and will be appointed as Advisers.

6. Appointment of Managing Officers

Following personnel will be appointed as Managing Officers as of 1 June 2019.

7. Retirement of Managing Officers

Following personnel will retire as Managing Officers as of 31 May 2019, and will be appointed as Advisers as of 1 June 2019.

8. Change in Operational Responsibilities of Managing Officers

Following change in operational responsibilities will become effective as of 1 June 2019.

9. Retirement of Advisers

Following personnel will retire as Advisers as of 31 May 2019.

10. Change in Personnel of Executive General Managers, Deputy Executive General Managers, Plant Managers of Domestic Affiliates, and President and Plant Managers of Overseas Affiliates

Following personnel will be appointed as of 1 June 2019.

1) Appointment of Executive General Managers and Deputy Executive General Managers

[Production]

[Customer Quality Assurance and Service]

[Finance]

2) Personnel Change of Department General Managers, Plant Managers, Domestic Affiliates Plant Managers and Overseas Affiliates President and Plant Managers

[Production]

[Inspection]

[Vehicle Regulations and Engineering Administration]

[Audit]

[Global Automobile Marketing]

[Automobile Engineering]