TOKYO
Toyota Motor Corporation, the world’s largest carmaker by sales, has announced a major leadership shake-up, with President and Chief Executive Officer Koji Sato set to step down next year in what the company is calling a broad executive reset aimed at preparing Toyota for a rapidly changing global auto industry.
Toyota confirmed that Sato will relinquish the CEO role on April 1, 2026, after a relatively short tenure that began in 2023. He will remain at the company, moving into a newly created senior position as Vice Chairman and Chief Industry Officer, a role designed to strengthen Toyota’s influence across the wider automotive sector and global policy circles.
Taking over as President and CEO will be Kenta Kon, Toyota’s current Chief Financial Officer and a veteran insider with decades of experience inside the company. Kon’s appointment is expected to be formally approved by shareholders later this year, but the leadership transition has already sent a clear signal about Toyota’s strategic priorities.
The change comes at a critical moment for the Japanese automaker. Toyota recently reported a sharp 43 percent drop in quarterly profit, reflecting rising production costs, currency pressures, and mounting trade and regulatory challenges. Despite the profit decline, Toyota maintained strong global sales and even raised its full-year outlook, helped by cost controls and solid demand in key markets including Japan, North America and Europe.
Company officials say the leadership reset is not a response to crisis, but a proactive move to sharpen decision-making as the industry faces profound disruption. Automakers worldwide are under pressure from the rapid rise of Chinese electric vehicle manufacturers, accelerating shifts toward software-driven cars, and the massive investments required for electrification, automation and connected mobility.
Under the new structure, Kon, 57, will oversee day-to-day operations with a focus on financial discipline and internal efficiency. His background in finance and strategic planning is seen as crucial as Toyota balances heavy investment in future technologies with the need to protect profitability in a volatile global market.
Sato, 56, will take on a more outward-facing role. In addition to his new Toyota post, he already serves as chairman of the Japan Automobile Manufacturers Association and holds a senior role within Japan’s powerful business federation. In his new position, Sato is expected to deepen Toyota’s engagement with governments, regulators and industry partners, particularly on issues such as trade policy, environmental regulation and the future of mobility.
The move also reflects Toyota’s evolving leadership model following the long reign of Akio Toyoda, who led the company for more than a decade before stepping aside as CEO in 2023 to become chairman. Toyoda remains a dominant figure at the company, and the latest reshuffle underscores Toyota’s preference for internal succession and continuity rather than outside leadership.
Markets reacted calmly to the announcement, with investors appearing reassured by Toyota’s steady sales performance and the choice of a finance-focused executive to guide the next phase. Analysts say the appointment of Kon suggests Toyota is prioritizing resilience and operational strength as competition intensifies and margins come under pressure.
The leadership transition will be completed in April next year, but its implications are already clear. As the global auto industry races through one of the most disruptive periods in its history, Toyota is reshaping its top leadership to ensure it remains not just the world’s biggest carmaker, but one capable of adapting quickly to the road ahead.
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