Toyota Motor (NYSE:TM) held a Toyota Times live interview and press conference to explain a newly announced executive structure that will take effect April 1, according to remarks made by host Yuta Tomikawa and company executives during the session. The company said the changes were approved at a board of directors meeting and disclosed shortly afterward.
Leadership changes effective April 1
During the briefing, the company outlined a shift in responsibilities at the top of its management structure. Koji Sato said he will move from representative director and president to vice chairman, chief industry officer (CIO), and operating officer. Kenta Kon will assume the role of president and CEO, with a greater internal focus on Toyota Motor Corporation (TMC).
Rationale: earning power and industry collaboration
Sato said Toyota’s management environment has shifted after two years of “foundation strengthening” and now requires a “gear change” toward improving productivity and producing “ever better, more affordable vehicles.” He said one of Toyota’s key management challenges is strengthening earning power to support the future.
A second challenge, Sato said, is accelerating collaboration across the automotive industry. He argued Japan’s international competitiveness will require united efforts among automakers and partners beyond the traditional auto sector, particularly as vehicles evolve alongside social infrastructure. Against that backdrop, he said Toyota’s role within the industry has grown “larger and more important than ever.”
Sato said the executive appointment meeting proposed the changes and that the proposal prompted broader discussion about the optimal organizational structure. The board subsequently approved the role changes.
Sato’s new focus and governance considerations
Sato said his new role will emphasize industry-wide collaboration, including work with the Japan Automobile Manufacturers Association (JAMA) and Keidanren. He also spoke about the personal strain of balancing Toyota’s presidency with external leadership expectations, including discussions that began in autumn around the selection of a JAMA chairman.
Addressing the length of his tenure as president—three years—Sato acknowledged it felt “short,” but said the pace of the automotive industry has changed and that timing and organizational needs mattered more than personal preference. He also explicitly denied any wrongdoing, noting that friends had messaged him asking whether he “did something bad.” “There is no wrongdoing,” he said, describing the discussions as positive and forward-looking.
Sato also confirmed that, as described in the press release, he will step down as a board member following the shareholders meeting in June. He cited two reasons:
- Corporate governance considerations: Toyota is mindful of governance code expectations, board composition, and diversity, and Sato said Toyota’s approach emphasizes roles rather than titles.
- Industry neutrality: Sato said retaining a Toyota board “hat” while working on cross-industry matters could create a perception of pressure from Toyota during debates where member companies may disagree. He said he wants to “go back to scratch” and serve as a connector across companies.
Kon’s reaction and priorities as incoming CEO
Kon said he was informed about the concept in mid-January by members of the executive appointment meeting and described his initial reaction as surprise. He said that, at the time of the announcement, his plans were not yet “crystal clear,” and he expects to continue communicating with Sato and other operating officers about direction and management team formation after April.
Kon emphasized that his background in accounting and finance shapes his focus on building a financial foundation that enables Toyota to make “good cars and also profit.” He said he “loves numbers” and, in a lighter exchange, acknowledged he likes minivans such as Noah and Voxy, and that he intends to continue driving and participating in motorsport activities as before.
Kon referenced a conversation with Chairman Akio Toyoda in which Toyoda raised the name of Taizo Ishida, described as a financial steward who avoided waste but made bold investments for Kiichiro Toyoda’s dreams. Kon said Toyota’s view of money should remain oriented toward the future of Toyota and should also consider that Toyota’s profits are not generated “just only by Toyota,” arguing the company should use money for others in the industry and the country as well.
Break-even volume, productivity, and cross-functional reform
In discussing profitability and resilience, Sato said Toyota does not set a numerical revenue target but wants a structure that can generate earnings even in harsh environments. He framed reducing break-even volume as a way to “hang in” during downturns and maintain earning power to support what Toyota “should do.”
Kon said Toyota recognizes break-even challenges and noted that break-even levels had increased “a little” in the past one or two years, citing external reasons and price levels as factors. He also suggested Toyota has sometimes been overly focused on functional benefits rather than the overall picture and said the company wants stronger cross-functional awareness, tying the push to the interim theme of an “intentional pause.”
Technology development and autonomous driving
Asked about autonomous driving and software-defined vehicles (SDVs), Kon framed Toyota’s direction around the goal of “zero traffic accidents,” a target he said Chairman Toyoda had shown as a core direction. Kon said Toyota is not as advanced as early entrants using AI- and machine-learning-based systems, such as Tesla and certain other players, and that Toyota can learn from them.
However, Kon pointed to Toyota’s scale—10 million annual sales and 150 million vehicles in operation—as a potential strength in data. He also referenced Toyota Safety Sense (TSS) as a customer-adoptable safety system and said Toyota is working across a spectrum from near-term customer-facing systems to longer-term fully autonomous systems.
When asked whether his selection signaled an intent to accelerate technology development, Kon said he would be “grateful” if interpreted that way, but described his primary role as creating an environment that supports investment, allows engineers to test multiple options, and builds a durable profit structure to support courageous challenges.
Continuity: “ever better cars,” team management, and Toyota identity
Both executives repeatedly stressed continuity in Toyota’s mission. Sato said progress toward transforming Toyota into a mobility company had become clearer through sustained action over the past three years, and he summarized what should be carried forward in the phrase: “Let’s make ever better cars.” He noted that today’s vehicles reflect development work from many years earlier and emphasized sowing seeds now for how Toyota will be viewed a decade from today.
Kon said Toyota’s team management approach will continue, describing a structure without “one superman” and emphasizing that making ever better cars and becoming a mobility company is shared across divisions, including non-engineering functions.
In an online question about whether “Fun to Drive” could take a back seat to profitability and technology, Kon said Toyota’s purposes would not change and that financial discipline is meant to enable investment for the future with “human warmth.” Sato added that he believed focus on fun-to-drive and ever better carmaking would strengthen because Kon could align more parts of the organization behind that direction.
Sato also discussed industry priorities as incoming JAMA chairman, saying member companies share a sense of crisis and that it is “not the time” for automakers to act separately. He said the focus should be on social implementation, identifying choke points, and taking specific actions rather than limiting efforts to discussion.
The event concluded with both executives telling employees and stakeholders that “Toyota is okay” going forward and that management intends to meet expectations under the new structure.
About Toyota Motor (NYSE:TM)
Toyota Motor Corporation is a global automotive manufacturer headquartered in Toyota City, Aichi, Japan. Founded in 1937 by Kiichiro Toyoda as an offshoot of Toyoda Automatic Loom Works, the company builds and sells a broad range of vehicles and related products under the Toyota and Lexus brands. Toyota’s operations encompass vehicle design, manufacturing, parts supply, and distribution through a worldwide dealer network, as well as complementary businesses such as vehicle financing and mobility services.
The company’s product lineup includes passenger cars, SUVs, pickup trucks, light commercial vehicles and heavy-duty commercial vehicles, along with engines and vehicle components.
