Toyota Motor Corporation on Friday announced a surprise leadership shake-up, naming finance chief Kenta Kon as its next chief executive, a move aimed at sharpening the automaker’s focus on cost control and internal management as it faces mounting competition from fast-moving Chinese rivals.
Current CEO Koji Sato, who has led the world’s largest automaker for just three years, will step down on April 1 to become vice chairman and take on a newly created role of chief industry officer, focusing on broader industry initiatives rather than day-to-day company management.
As chief financial officer, Kon has earned a reputation for maintaining strict fiscal discipline and is widely regarded as the architect of a proposed buyout of forklift subsidiary Toyota Industries. The plan, which would bolster the founding Toyoda family’s control over the group, has faced criticism from minority shareholders for a perceived lack of transparency and being significantly underpriced.
Kon’s career at Toyota spans decades, including leadership of the accounting department and a stint as head of the secretarial division under former CEO Akio Toyoda, the founder’s grandson. Toyoda led the company for nearly 15 years before appointing Sato as his successor in April 2023.
The announcement coincided with Toyota’s third-quarter earnings report, in which the automaker raised its full-year operating profit forecast by almost 12%, driven by a weaker yen and cost-cutting measures.
Industry analysts see the leadership changes as a strategic move to accelerate decision-making amid the rapid disruption posed by Chinese EV manufacturers.
“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. “While product has always been Toyota’s top priority, this change likely reflects the many more decisions the automaker must make around its non-automotive businesses.”
Kon himself admitted to being surprised when approached about the role last month. “I was surprised when I was first approached about the job in the middle of last month,” he told reporters at a press conference. Sato clarified that Toyoda was not involved in the decision.
Currently, Kon also oversees finances at Toyota’s mobility technology subsidiary, Woven by Toyota, experience analysts believe will be valuable as the automaker seeks to close the software and mobility gap with Chinese competitors.
Sato took the helm from Toyoda at a time when Toyota faced criticism for its cautious approach to battery electric vehicles. However, the company’s continued focus on gasoline-electric hybrids has paid off, underpinning years of record sales, including last year when Toyota retained its position as the world’s top-selling automaker.
Boluwatife Enome
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