- The Toyota Chief Executive Officer, Koji Sato, resigns after three years and moves to vice chairman role.
- The Chief Financial Officer, Kenta Kon, takes over as the new CEO, focusing on financial strategy and internal management
- The reshuffle coincides with scrutiny over Toyota Industries forklift buyout
The Toyota Motor Corporation announced on Friday, February 6, that the Chief Executive Officer, Koji Sato, will step down after just three years leading the world’s largest automaker. Sato will assume the role of vice chairman and chief industry officer, while the Chief Financial Officer, Kenta Kon, will take over as CEO, Reuters reported.
The management reshuffle comes amid growing scrutiny of Toyota’s planned buyout of its forklift subsidiary, Toyota Industries (6201.T). Minority investors have criticized the deal as underpriced and lacking transparency.
The announcement coincided with Toyota’s third-quarter earnings report, which showed a nearly 12% increase in the full-year profit outlook, driven by a weaker yen and cost-cutting measures.
In their new roles, Kon will focus on internal company management, while Sato will oversee broader industry initiatives. The changes aim to accelerate decision-making as Chinese competitors disrupt the global auto market.
“Kon, I think he basically has more experience dealing with the financial issues of the company than Sato-san, who basically came from the product development side,” said James Hong, head of mobility research at Macquarie, describing Kon as the “mastermind” behind the forklift buyout.
Kon, who also oversees finances at Toyota’s mobility technology subsidiary Woven by Toyota, admitted he was surprised when approached about the CEO role in mid-January. His expertise in finance and mobility technology is expected to help Toyota close its software gap with Chinese competitors.
Sato became CEO in April 2023, succeeding Akio Toyoda, the founder’s grandson, amid criticism of Toyota’s slow adoption of battery electric vehicles. Despite this, Toyota’s continued focus on gasoline-electric hybrids has driven record sales and helped maintain its position as the world’s top-selling automaker last year.
During Sato’s tenure, Toyota shares rose 111%, including dividends, outperforming the Nikkei index. However, the company has lost some market share in regions like Southeast Asia to agile Chinese rivals such as BYD (002594.SZ), while governance issues, including criticism of the Toyota Industries buyout, have persisted.
“The change likely reflected the automaker’s awareness of the many more decisions to be made around the non-automotive businesses,” Hong added, noting that while product innovation has always been Toyota’s focus, financial and strategic oversight is becoming increasingly important.
Toyota to launch hybrid electric vehicles in Nigeria
Meanwhile, TheRadar earlier reported that Toyota Nigeria Limited (TNL) announced plans to launch three hybrid electric vehicles in Nigeria in the next three years as part of its commitment to promoting sustainable transportation and supporting the Nigerian government's green deal initiatives.
The development was disclosed during the maiden edition of the Toyota Motor Show held on Thursday, June 27, 2024 to Saturday, June 29, 2024 this year at Lekki, Lagos.