Sato will transition to the role of Vice Chairman and assume a newly created position of Chief Industry Officer, where he will focus on broader industry engagement and external strategy
Toyota Motor on Friday said Chief Executive Officer Koji Sato will step down after three years at the helm, with Chief Financial Officer Kenta Kon set to take over from April.
Sato will transition to the role of Vice Chairman and assume a newly created position of Chief Industry Officer, where he will focus on broader industry engagement and external strategy, the world’s largest automaker said.
The leadership change was announced alongside Toyota’s third-quarter earnings, which showed resilience in a volatile global environment. The company raised its full-year operating profit forecast by nearly 12 per cent, aided by a weaker yen and tighter cost controls.
The transition comes at a time for Toyota when investors have raised concerns over the proposed buyout of listed subsidiary Toyota Industries, with minority shareholders questioning pricing and transparency. The company did not link the leadership reshuffle to the transaction.
Kon’s elevation underscores Toyota’s sharpening emphasis on financial discipline and capital allocation as the auto industry enters a capital-intensive phase marked by electrification, software integration and intensifying competition. As CFO, he has played a central role in steering balance sheet strategy and maintaining cost efficiencies.
Sato took charge in April 2023, succeeding Akio Toyoda, at a time when Toyota faced criticism for what some saw as a cautious approach to electric vehicles. Rather than pivoting aggressively to battery EVs, Sato continued to back Toyota’s hybrid-first strategy while expanding investments in EVs and software.
That calibrated approach paid off. Toyota retained its position as the world’s top-selling automaker and posted record sales even as EV demand moderated in several key markets.
However, competitive pressures are mounting. Chinese automakers such as BYD are expanding rapidly across Asia and beyond, while the global shift toward electric and software-defined vehicles is demanding heavy upfront investment.
Kon, regarded internally as a steady financial operator with exposure to Woven by Toyota, the company’s software arm, is expected to prioritise disciplined execution as the group navigates a more challenging and capital-hungry phase of industry transformation.
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