Toyota Motor Corp. (7203.T) announced on Thursday that its CEO and President, Akio Toyoda, will step down and become chairman of the company from April 1. Taking his place as the new CEO will be Koji Sato, a 53-year-old president of the carmaker’s luxury brand Lexus. The current chairman, Takeshi Uchiyamada, will remain on the board but drop his chairman title.
Toyoda’s succession had been a focus for investors. During his more than a decade at the top, he weathered crises from the recession to Toyota’s own recall and safety crisis to the 2011 earthquake and tsunami in Japan. Environmental groups criticized his reluctance to embrace electric vehicles.
At a shareholder meeting in June 2020, Toyoda said he was “thinking about timing and the selection of a successor” when asked about succession planning. On Thursday, he said Sato was chosen because he “worked hard to learn Toyota’s philosophy” and “needs youth, energy, strength”.
Sato started his career at Toyota in 1992. He was appointed chief engineer of Lexus International and president of Lexus International and Gazoo Racing Company in 2016 and 2020, respectively. In 2021, he became Toyota’s chief branding officer.
Toyoda, who has been CEO since 2009, said his term was “struggling to survive one day after the next”. Tokyo-listed shares of Toyota ended 0.63% lower Thursday.
