Suzuki Shares Plunges After Chairman Announces Retirement Plans

Suzuki Motors' shares came crashing down on Thursday, reaching a one-month low after an announcement that Osamu Suzuki was set to retire later this year.

Investors have become worried about the company's ability to keep making strategic and potent decisions after the departure of its renowned leader, who took the wheels to make the automaker one of the largest vehicle companies in the world.

READ MORE: Chinese Stocks Reach New All-Time High

The 91-year-old announced on Wednesday that he was going to retire from his position by June 2021, after the company's annual shareholders' meeting, and will now be taking the role of a senior advisor.

Suzuki's stock price fell by more than 200 points, or 4 percent, hitting its lowest level since February, despite a great overall performance in the Tokyo markets which saw the Nikkei Stock Average gain nearly 2 percent after a Wall Street rally.

Suzuki Motors also suffered a share price plunge in India, where a subsidiary is a top automaker. Maruti Suzuki India's stock dipped over 9 percent on Wednesday, before trimming losses and closing down 0.4 percent.

Arifumi Yoshida, an analyst at Citigroup Global Markets Japan stated that "the retirement of Chairman Suzuki, who has led the company for a long time, will possibly impact the company's share price negatively in the short term."