TOYOTA CONFIRMED Akio Toyoda as its new president yesterday, promoting the grandson of the company’s founder to guide the world’s largest car firm through the worst downturn in its history.
Toyoda (53) and a new management team that includes four new executive vice presidents and eight new board members, will need to hit the ground running with the company facing tanking car sales and a record loss for the year to March.
The industry slump, fuelled by tight credit, volatile fuel prices and rising jobless numbers, has already helped drive US rivals General Motors and Chrysler into bankruptcy.
“We expect to face continued hardship in our business environment for the near term, despite signs of recovery in some areas,” outgoing president Katsuaki Watanabe told Toyota’s annual shareholders’ meeting, adding that the company would try to achieve deeper cost cuts than planned.
“We are sorry to have worried our shareholders,” he said. At a board meeting following the shareholders’ meeting, Watanabe was confirmed as vice chairman, along with the other management changes, including the promotion of Toyoda.
Toyoda had long been seen as a candidate to head the company founded by his grandfather in 1937 as he rose through the ranks at nearly twice the speed of his predecessor.