Toyota downsizes director and senior management numbers

JAPANESE CAR giant Toyota has cut the number of its directors from 27 to 11 and introduced a new global strategy in the latest restructuring of its operations following last year’s global recalls.

Nine directors are resigning, most notably Katsuaki Watanabe, the vice chairman and previously the company’s president during a period of marked growth in production in the past five years that saw Toyota become the world’s leading car producer.

Some analysts have partly attributed the spate of global recalls in the past 18 months to the push towards production volume growth.

Mr Watanabe was replaced as president in June 2009 by Akio Toyoda, grandson of company founder, Kiichiro Toyoda.

Alongside a reduction in the number of directors, 11 senior managing officers, the top tier in the Japanese firm’s management structure, are also resigning. The changes are subject to shareholders’ approval in late June

Announcing the changes yesterday, Mr Toyoda also launched the firm’s new global strategy that aims to see the company sell half of its vehicles in emerging markets and roll out 10 more hybrid models by 2015 as part of efforts to boost operating profit to at least ¥1 trillion (€8.6 billion) with a profit margin of 5 per cent.

Mr Toyoda stressed the volume target would not be the most important goal.

“I don’t want it to be about the volumes, but rather see that as our receiving the business of 10 million customers,” he said.

Since taking on the role of president, Mr Toyoda has often spoken of the need to go back to the basics of “making better cars and contributing to society”.

Last year Toyota recalled nearly 20 million cars, partly as a result of claims of “unintended acceleration”. At the time there were suggestions the fault may have been due to electronic problems with the throttle system, but last month a US National Highway Traffic Safety Administration study concluded the only known causes were two mechanical defects.