Toyota on Friday appointed its chief financial officer, Kenta Kon, as its next chief executive, a surprise leadership change as the world’s largest automaker confronts intensifying competition from fast-moving Chinese rivals, reports Reuters.
Kon, a close ally of Chairman Akio Toyoda, will assume the role on April 1. Current CEO Koji Sato will step down after three years at the helm to become vice chairman and take on the newly created position of chief industry officer.
As CFO, Kon has earned a reputation for strict cost control and financial discipline. He is also widely viewed as the architect of a proposed buyout of forklift maker Toyota Industries, a deal intended to strengthen the Toyoda founding family’s control of the Toyota group but criticised by minority shareholders as opaque and undervalued.
Before rising through Toyota’s accounting ranks, Kon headed the automaker’s secretarial department during Toyoda’s tenure as CEO. Toyoda, the grandson of the company’s founder, led Toyota for nearly 15 years before handing the top job to Sato in 2023.
The leadership reshuffle was announced alongside Toyota’s third-quarter earnings, in which the company raised its full-year operating profit forecast by nearly 12%, supported by a weaker yen and cost-cutting measures.
Under the new structure, Kon will focus on internal management and financial strategy, while Sato will oversee broader industry issues—an effort to speed up decision-making as Chinese automakers reshape the global auto market.
Sato took over during a period of criticism over Toyota’s cautious approach to battery electric vehicles, though the company’s strong bet on hybrid models has helped it maintain its position as the world’s top-selling automaker. During his tenure, Toyota shares gained 111%, including dividends, outperforming Japan’s Nikkei index.
Despite strong financial performance, Toyota has lost market share in key regions such as Southeast Asia to Chinese competitors including BYD, underscoring the challenges facing Kon as he takes the helm.
Bd-pratidin English/ Jisan
