Akio Toyoda steps down as Toyota CEO; succeeded by Lexus boss

Akio Toyoda has stepped down as Toyota CEO after 14 years in the top job.

At 66 years-old, Toyoda took the top job in 2009 and is the grandson of Kiichiro Toyoda, who started Toyota’s automotive manufacturing business in Japan after World War II.

Toyoda will be succeeded by 53 year-old Koji Sato, currently chief branding officer and president of Lexus, on April 1. Toyoda will then go on to be chairman of the board at Toyota.

The change is said to be a result of fast-moving electrification in the industry, with Toyoda admitting he sees the need for a younger person to sit at the helm and steer Toyota into the future.

“Younger people should be placed in the right job so they can come up with the answer to what the future of mobility should be”, Toyoda-san said in a statement, adding that “we’re facing a once-in-a-century change in the auto industry”.

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Toyota’s electric vehicle strategy has been a stop-start affair and currently lags behind other carmakers, with Toyoda-san not setting a definitive target like so many other auto manufacturers such as Volvo, Volkswagen, Audi and Jaguar.

In December 2021, Toyoda-san announced there would be 30 new EVs by 2030, with pure electric sales in Europe, China and the United States, however he has since gone on to openly criticise the fast transition to electric vehicles.

Toyoda-san’s caution is understandable, as Toyota is Japan’s biggest company, selling over 10 million vehicles globally in 2021.

Currently, Toyota only has one electric vehicle on-sale in world markets, the BZ4X, which was developed in partnership with Subaru’s Solterra. Both are readying for Australian release this year.

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Toyota was expecting its E-TNGA platform under the BZ4X to support rapid electrification, however the brand has revisited the drawing board amid fast-moving rivals such as Tesla and Polestar. New CEO Sato-san will play a crucial role in electrification of Toyota’s range into the future.

It would be cruel to simply look back on toyoda-san’s leadership period as stagnating, though. After declaring ‘no more boring cars’ were to come from Toyota, the motoring landscape has been treated to some gems, including the Toyota 86, rebirth of the Supra, GR Yaris and now GR Corolla.

More to come as news develops.