Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. On the Move
January 26, 2023 02:11 AM

Toyota taps Lexus head Koji Sato as new CEO; Akio Toyoda becomes chairman

Koji Sato will be Toyota's next president and CEO, as Akio Toyoda, grandson of the company’s founder, steps up to become chairman.

Hans Greimel
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Toyota Koji Sato
    REUTERS

    Koji Sato on stage at the Tokyo Auto Salon 2023 in January.

    TOKYO – Toyota has picked Koji Sato, the head of Lexus and the Gazoo Racing unit, to be the automaker’s next president and CEO, as Akio Toyoda, grandson of the company’s founder, steps up to be the company’s new chairman.

    The changes take effect April 1.

    As part of the shuffle, current Chairman Takeshi Uchiyamada, known as the father of the Prius for his work in developing the popular hybrid vehicle, will step aside as chairman but retain a seat on the board.

    The reorganization answers a long-standing question about succession for Toyoda, who took office in 2009 and presided over a tumultuous period of challenges and expansion, including the 2009 financial crisis, a global recall scandal and the 2011 Japan earthquake.

    Under Toyoda’s watch, the company overcame these challenges to achieve record sales and earnings and solidify its title as the world’s largest automaker.

    “I believe that over the past 13 years, I have built a solid foundation for passing the baton,” Toyoda said at an online briefing shortly on Thursday. The new management team, Toyoda said, “has a mission to transform Toyota into a mobility company.”

    Toyoda, 66, has worked closely with Sato, 53, in the latter’s roles as head of the Lexus premium brand as leader of Gazoo Racing, a pet favorite of the outgoing president.

    Toyoda said Sato was tapped, partly because “he loves cars” and because of “his youth.”

    Toyoda said someone younger needs to complete Toyota’s transition into a new era.

    “I’m a carmaker through and through, and that’s how I’ve transformed Toyota,” Toyoda said. “But a carmaker is all that I am. That is my limit. The new team under President Sato has the mission to transform Toyota into a mobility company.”

    Sato’s challenges

    Among Sato’s challenges is navigating an industry under siege by electrification, autonomous driving and connectivity.

    Sato takes the helm at a time when Toyota is being criticized for falling behind in the global electric vehicle race. He is committed to breaking the old Toyota mold by developing fun-to-drive cars that are stylish and cool.

    Sato, left, and Toyoda, right, can often be seen together at events.

    Sato must also plot a path toward a carbon neutral future, while balancing the wide customer needs of the automaker and fending off nimble new rivals from Silicon Valley, China and beyond.

    Sato will have to reinvent the company for a new era while retaining all the corporate culture that has been the secret to Toyota’s success for so long.

    Toyoda is the grandson of Kiichiro Toyoda, the found of the car company, and the son of Shoichiro Toyoda, a past president of the company until 1992. Toyoda’s shift to the supervisory role of chairman hands control of day-to-day operations to a non-family member for the first time in a decade.

    Toyoda took over his family’s namesake automaker just as it was slumping to its first operating loss in 70 years amid the depths of the global financial crisis.

    He soon faced another challenge with the 2010 recall upheaval surrounding claims of unintended acceleration in Toyota vehicles. Then, the 2011 earthquake-tsunami-nuclear meltdown triple punch throttled the entire Japanese industry, throwing Toyota into defense mode.

    “There was never a day that was peaceful,” Toyoda said, looking back.

    Toyoda reacted by taking an “intentional pause” on rampant expansion to regroup by nailing down quality and improving product. By pursuing a more sustainable pace, Toyota soon was on the path toward new heights of earnings, sales and accolades.

    In recent years, Toyoda has stepped up its race in electrification, investing billions of dollars in electric cars and batteries toward the goal of selling 3.5 million EVs a year in 2030.

    In recent years, as Toyoda passed his 60th birthday, speculation began to mount about the eventual handover. When questioned about his succession plans at last summer’s annual shareholder’s meeting, Toyoda demurred from a straight answer but said the next president must have an “unshakable conviction on why Toyota exists.”

    Sato has a engineering degree from Japan’s prestigious Waseda University and joined Toyota in 1992. He was appointed chief engineer of Lexus International Co., where his noted works included leading development of the super sexy Lexus LC coupe.

    He became president of both Lexus International and Gazoo Racing Company. In those roles, he can often be seen hobnobbing with Toyoda trackside at various racing event, some of which Toyoda participates in as a driver of developmental carbon neutral cars.

    In closing working with Toyoda, Sato has imbibed much of his outlook and ethic, indicating he will champion key elements of the Toyota way.

    Speaking of his boss in an interview last year, Sato said, “He is the guiding person showing the team the vision and philosophy of the brand… Akio's sensors as the master driver are critically important.”

    Yet, Sato is also a leader not afraid to shake things up.

    In speaking to Automotive News shortly after he took over Lexus, he said Toyoda tasked him with one simple straight-forward mission: "Make some change." At Lexus that translated into something sexy. "If the question is eco or emotion, I choose emotion," Sato said.

    Toyoda said it would be important of Sato to manage the company as a team, not as a one-man show. The marching orders may signal a contrast to Toyoda’s own management style.

    “Up until now, I was able to use my own personal skills to lead the company to this point,” Toyoda said. “But I think it shouldn’t always be under me. There should be a new team that combines their strengths and brings Toyota to the next stage.”

    Related Article
    Lexus chief's ascension comes at make-or-break moment for Toyota
    Toyota's new CEO must navigate shift to clean energy
    How Akio Toyoda chose to announce his plans to step down
    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    RECOMMENDED FOR YOU
    JLR names new boss for Jaguar brand ahead of EV shift
    Recommended for You
    Jaguar Rawdon Glover
    JLR names new boss for Jaguar brand ahead of EV shift
    Mazda's Masahiro Moro, left, is pictured with Akira Marumoto
    Mazda promotes company veteran Moro to CEO
    CharlesSanderson-MAIN.jpg
    Rivian's chief engineer returns to McLaren
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us