Honda's Chief Executive Officer Takanobu Ito is stepping down as the company struggles with recalls and quality lapses, sources said.

Effective June, Ito will be replaced by Takahiro Hachigo, Honda's current managing officer.

Honda, however, did not say if Ito's resignation was due to massive recalls over faulty airbags, poor sales and regulatory fines.

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But Ito himself said now is the perfect time to overhaul the company's management.

"Going forward, changes will be coming up more and more rapidly, competition will be more severe, so I think now is a good time to change the management to a younger generation so as to revamp our whole operations," Ito said.

Ito joined Honda in 1978 and worked his way up the ranks. He became head of the company in June 2009. 

He was responsible for major changes in the automaker's manufacturing structure around the globe, which for a time made the brand leader in quality and design. 

Ito put up plants in developing countries such as Brazil, Indonesia and China.

Incoming CEO Takahiro Hachigo first joined Honda in 1982.  He was initially part of Honda's research and development operations, which led to the development of the U.S.-built Odyssey minivan. 

He also oversaw operations in U.S., Europe and China, and was behind the company's well-known SUV, the CR-V.

"I think this is an attempt by Honda to tread a different course, with someone who upholds harmony," said veteran car analyst Takaki Nakanishi.

One senior Honda executive meanwhile said, "I don't know anyone who has anything bad to say about him," as he described Hachigo as a nice and thoughtful person.

After his resignation, Ito will remain with Honda as a member of the board and Director and Advisor to Honda Motor Company Ltd. 

TagsHonda, CEO, recalls