The world's largest car manufacturer, Toyota Motor Corp., announced an unexpected change in its top management. On February 6, it became known that CEO Koji Sato is leaving his post after three years, handing over power to the current CFO Kenta Kon. This was reported by Reuters, writes UNN.
Details
Kenta Kon's appointment is linked to the need to strengthen internal governance and resolve complex financial issues, including the high-profile acquisition of the subsidiary Toyota Industries. Sato, who came from product development, will move to the position of Vice Chairman and focus on strategic industry development. This reshuffle is intended to accelerate decision-making amid aggressive pressure from Chinese electric vehicle manufacturers.
Kon, I think he has more experience in dealing with the company's financial issues than Sato-san, who essentially came from product development.
Kenta Kon himself admitted at a press conference that the appointment came as a surprise to him: "I was surprised when I was first approached with a job offer in the middle of last month."
Record profits amid market challenges
The announcement of the leadership change coincided with the publication of a financial report in which Toyota raised its annual profit forecast by almost 12%. This was facilitated by a weak yen and effective cost reduction. Although the company's shares rose by 111% during Sato's tenure, the car giant faced a loss of market share in Southeast Asia, where more agile competitors such as BYD are taking the lead.
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The new CEO will also use his experience at the technology subsidiary Woven by Toyota. This is critical to overcoming the Japanese manufacturer's lag in the software and battery electric vehicle segment, where Toyota has long favored hybrid models.