TOYOTA FORMALLY named Akio Toyoda, the 52-year-old grandson of its founder, as its next president and chief executive on Tuesday, replacing Katsuaki Watanabe at a time of severe crisis for the global car industry.
The decision came less than a month after Toyota warned it would suffer its first operating loss in decades this financial year. The Japanese producer – for years the industry’s profit leader – has cut production, shrunk its workforce and scaled back investment plans.
Analysts say Toyota remains a fundamentally well-run company, in spite of the industry slump, but Toyoda will nonetheless face tough decisions, in particular over staffing and production cuts.
Toyota’s worldwide group sales fell by 4 per cent in 2008, the company said on Tuesday, led by a 15 per cent fall in US, its biggest market.
Watanabe, who had been president since 2005, will become vice-chairman, the company said. He is expected to take over the duties of Fujio Cho, the previous president and current chairman, who is understood to be suffering from back problems, making travel difficult.
Although Toyoda’s family owns just 2 per cent of Toyota’s shares, he has long been seen as a leading candidate for the chief executive job.
His father, Soichiro, ran the company from 1982 to 1992 and an uncle followed as president until 1995.
Toyoda has worked in the US and China and currently oversees Toyota’s international operations along with domestic marketing.
He is a keen motorsport fan and is reportedly behind the development of the nascent performance arm of Lexus.
He will take over after Toyota’s annual shareholder meeting in June, the company said, although he is expected to take a leading role in decision-making during the transition.