Toyota President and CEO Akio Toyoda to step down April 1

A leadership shakeup looms over Toyota Motor Corporation as current President and CEO Akio Toyoda will be stepping down from his position effective April 1, 2023. 

Akio Toyoda (left) takes over the Toyota chairmanship from Takeshi Uchiyamada (right) and will be replaced by Lexus and Gazoo Racing Chief Koji Sato (center)

In a statement, the automaker said that Toyoda’s departure from the role is just one of the major changes to Toyota’s executive structure that the automaker will undergo. 

Toyoda, the grandson of Toyota founder Kiichiro Toyoda, will have a new role as Chairman of the Board of Directors. Taking the company’s reins in his place is Koji Sato, who currently serves as President and Chief Branding Officer of Lexus as well as President of Toyota’s Gazoo Racing Company. 

Takeshi Uchiyamada, the current Chairman, relinquishes his position to Toyoda but will remain as a member of the Board of Directors. The new positions will be formalized after approval at Toyota’s 119th Ordinary General Shareholders’ Meeting. 

Toyoda also actively took part in races as a driver under the name 'Morizo'

Sato’s appointment came as a surprise to industry observers who had expected Toyoda to carry on as President and CEO for a while longer. Toyoda said that Sato was chosen despite his relatively young age of 53 because of his efforts in learning Toyota's philosophy, having risen through the automaker's ranks since starting in 1992.      

Toyota has made significant strides with Toyoda’s efforts, including the establishment of Gazoo Racing as the automaker’s new performance and motorsports arm. This led to the development of models such as the GR Yaris, providing an opportunity for Toyota to shed its image as a maker of practical but bland models. 

Toyoda’s watch also resulted in the unveiling of at least 15 new electric models for Toyota and Lexus, including the company’s first dedicated battery-electric vehicle, the bZ4X.      

The bZ4X is one of 15 electric vehicles Toyota will be releasing worldwide by 2030

However, Toyoda’s tenure has also faced criticisms, notably from investors and environmental activists who once praised Toyota’s emissions record. They allege that the company’s continued push for hybrid electric and hydrogen propulsion puts it at risk of being left behind in terms of innovation by companies such as Tesla and Chinese brands that are growing increasingly aggressive in pushing for electric mobility.

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