Toyota Motor Corporation has announced that its Chief Executive Officer, Koji Sato, will step down after three years in the role. The company said on Friday that Sato will be replaced by its Chief Financial Officer, Kenta Kon, while Sato will move into the positions of vice chairman and chief industry officer, according to Reuters. The surprise leadership change comes amid heightened scrutiny of Toyota’s proposed buyout of its forklift subsidiary, Toyota Industries. Minority shareholders have criticised the deal, arguing that it lacks transparency and undervalues the company.
Toyota disclosed the management reshuffle alongside its third-quarter earnings report, which raised its full-year profit forecast by nearly 12 percent, supported by a weaker yen and cost-reduction efforts. Under the new structure, Kon will focus on internal management and financial oversight, while Sato will concentrate on broader industry and strategic initiatives. The company said the changes are aimed at speeding up decision-making as Chinese automakers increasingly disrupt the global auto market.
“Kon has more experience handling the company’s financial issues than Sato, who comes from a product development background,” 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 unit, Woven by Toyota, said he was surprised when he was first approached for the role in mid-January. His background in finance and mobility technology is expected to help Toyota address software-related challenges and compete more effectively with Chinese rivals.
Sato became CEO in April 2023, succeeding Akio Toyoda, the founder’s grandson, at a time when Toyota faced criticism for its slower adoption of battery electric vehicles. Despite this, the company’s continued emphasis on gasoline-electric hybrids has delivered strong results, contributing to record sales and keeping Toyota as the world’s top-selling automaker last year. During Sato’s tenure, Toyota shares have climbed 111 percent, including dividends, outperforming Japan’s Nikkei index. However, the automaker has lost some market share in regions such as Southeast Asia to fast-growing Chinese competitors, including BYD.
Source: https://punchng.com/
