Toyota Motor Corp. announced a leadership change as Chief Financial Officer Kenta Kon is set to succeed Koji Sato as Chief Executive Officer, effective April 1. The automaker’s decision comes amid a broader industry transformation, and arrives alongside a raised profit outlook for the current fiscal year.
The company stated that Kenta Kon will direct internal operations as chief executive, while outgoing CEO Koji Sato will transition into the position of vice chairman and take on the firm’s new role of chief industry officer. The stated aim of these changes is to speed up corporate decision-making as the automotive sector undergoes significant disruption.
Koji Sato began his tenure as CEO in April 2023, succeeding Akio Toyoda. His appointment came as the company faced scrutiny over its electric vehicle strategy. Under his guidance, the company maintained its focus on hybrid technology, which contributed to strong sales figures and helped Toyota keep its global lead in auto sales over the past year.
However, Toyota has faced competitive pressure from emerging Chinese manufacturers and has recently encountered governance concerns related to the Toyota Industries acquisition. An expert noted that Kon was seen as the “mastermind” behind the deal and could bring stronger financial management experience than Sato, who rose through product development roles.
The leadership change announcement was made during Toyota’s third-quarter results, which included an upgraded projection for full-year net income, up from 2.93 trillion yen by 11% to 3.57 trillion yen. The automaker also raised its sales forecast by 4.1% to 50 trillion yen and increased its operating profit target to 3.8 trillion yen, up from the previous estimate of 3.4 trillion yen.
These improved figures were attributed to a favorable currency environment and ongoing cost-cutting initiatives.
