Key Points
- Toyota Chief Executive Koji Sato will step down after three years and become vice chairman and chief industry officer
- The leadership change is intended to speed decision‑making as the company faces industry disruption and intensifying global competition.
ISLAMABAD: Toyota Motor Corporation, the world’s largest automaker by volume, announced a major leadership change on Friday, with Chief Executive Koji Sato stepping aside after three years at the helm to be replaced by its finance chief, Kenta Kon, according to Toyota Global Newsroom.
According to the company’s website, in the Japanese language, widely reported by Japanese and international media, under the new structure, effective April 1, Sato will move on to the newly created role of vice chairman and chief industry officer, focusing on broader strategic and industry issues.
Kon, who currently serves as Chief Financial Officer (CFO), will become President and Chief Executive Officer, concentrating on internal management at Toyota.
Toyota said the reshuffle is intended to accelerate management decision-making amid rapid changes in the auto industry, including heightened competition, technological transformation, and global economic pressures.
The company announced the change alongside its third-quarter earnings report, in which it upwardly revised its full-year profit outlook, helped by a weaker yen and cost-cutting efforts.
Kon, 57, joined Toyota in 1991 after earning a degree in economics and has risen through the ranks with strong credentials in finance and strategic business units, including roles involving the company’s mobility and technology arms.
His appointment reflects a shift toward financial and operational priorities as Toyota navigates increasingly complex market dynamics.
Sato, who succeeded Akio Toyoda in April 2023, will continue to play a significant role in the global automotive sector through leadership roles in industry groups, including as chairman of the Japan Automobile Manufacturers Association and vice chair of the Japan Business Federation, according to nippon.com
The leadership change comes as Toyota confronts challenges such as intensifying competition from Chinese automakers and the ongoing industry transition toward electrification and new mobility technologies. Analysts view Kon’s financial expertise as a strategic asset in steering the company through these disruptions while maintaining Toyota’s long‑term goals, according to Financial Times.
