Toyota CEO Akio Toyoda to Step Down, Become Chairman

Tokyo-based Toyota is one of the world's largest automakers. The company's products include cars, trucks, SUVs, minivans, and hybrids. Toyota has a strong presence in both developed and emerging markets.
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Motor Corp. announced Thursday that Akio Toyoda, who has been CEO since 2009, will step down from his current roles and become chairman in April. Toyoda is a member of the founding family of the company.
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Koji Sato, who has been Chief Branding Officer at Toyota since 2020, will become the company's president and chief executive in April. Takeshi Uchiyamada, Toyota's current chairman, will step down from that position.
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Mr. Toyoda has announced that he will be stepping down as president of Toyota in order to support a new president and become chairman. This decision was made in order to advance change at Toyota.
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The management switch at Toyota comes as the company navigates the transition in the auto industry toward electric vehicles. Mr. Toyoda has staked out an unusual position in the industry by questioning whether EVs should be pursued exclusively, in contrast to auto makers that have set dates by which their lineups will be 100% EV.
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Mr. Toyoda has warned of potential problems with EVs, such as the lack of charging infrastructure in some countries and the vehicles’ reliance on electricity that may be produced from carbon-emitting sources. He has said Toyota intends to offer customers a mix of options, including hybrid gas-electric vehicles.
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Mr. Sato has a background in mechanical engineering. He joined Toyota in 1992 shortly after graduating from Waseda University, and has since been working on developing vehicles, including Toyota’s popular Corolla sedan. Mr. Sato said on Thursday that he wants to be a president who continues to make cars.
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Achieving carbon neutrality by 2050 will require more than just electric vehicles, according to Mr. Sato. "We have to take a 360-degree approach," he said.
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Since Mr. Toyoda has been in charge, the car company has increased its investment in electric vehicles (EVs). It has stated that its goal is to sell 3.5 million EVs annually by 2030. Mr. Toyoda announced earlier in January that Toyota is planning to introduce a new manufacturing platform that would be designed specifically for EVs.
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Mr. Toyoda, 66, said that after more than 13 years on the job, it was time to pass the baton to a younger executive. He believes that this will help the company continue to grow and succeed in the future.
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"I think being a car guy has helped me bring about change at Toyota," said Mr. Toyoda. He is the grandson of Kiichiro Toyoda, who brought the Toyoda family business into auto making before World War II. "But I can't go beyond being a car guy. That is my limit."
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Mr. Toyoda said that Mr. Sato was also a car lover and that he believed that the two of them could use teamwork to build Toyota’s business. He went on to say that “the new team can do things that I can’t do. The next generation will create the future.”
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Under Mr. Toyoda, the car maker overcame a crisis in 2009-10 involving unintended acceleration and other problems attributed to its cars, which led Toyota to recall millions of vehicles. He testified before U.S. Congress in 2010, helping to allay fears and concerns.
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Under his leadership, revenue and profit have steadily increased, and Toyota has cemented its spot as Japan’s most valuable company by market capitalization. This is a testament to his excellent leadership skills and the hard work of the Toyota team.
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In 2020, Toyota regained the title of world's top-selling automaker, a position it had held previously for five years. In 2021, Toyota also became the bestselling automaker in the United States, before ceding the top spot back to General Motors last year.
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In the most recent full fiscal year, ended March 2022, Toyota's revenue rose 15% to ¥31.4 trillion, equivalent to $242 billion. Net profit rose 27% to ¥2.85 trillion, equivalent to $22 billion.