Toyota announces new CEO

Toyota Motor Corporation announced February 6 that its chief executive officer, Koji Sato, will step down from the role this spring to serve as Vice Chairman and Chief Industry Officer as well as chairman of the Japanese Automobile Manufacturers Association (JAMA). Replacing him at the head of the Japanese auto giant is Kenta Kon, Toyota’s current Chief Operating Officer.

In addition to his COO role, Kon is also Toyota’s current CFO and Chief Financial Officer of Woven by Toyota, Inc., the Toyota division in charge of managing changes to the company’s vehicles’ operating systems and automated driving development. Following the April 1 transition, Kon will become President and CEO of the Japanese auto giant while retaining his role as Operating Officer.

Sato, meanwhile, will remain on board at Toyota as the Vice Chairman of its Board of Directors and in the newly created role as Chief Industry Officer. Yoichi Miyazaki, an executive VP and member of the Toyota Board, will become the Chief Financial Officer in Kon’s place.

In a company statement, Toyota said the transition would let Sato spend more time advocating for the Japanese automotive industry while Kon takes over internal management at Toyota. The company emphasized the move would also address the need for Toyota to expand partnerships “beyond the industry” as it transforms into a “mobility” company, and added that the company’s priority is to reform Toyota’s value chain entirely, an effort Kon is reportedly well-placed to lead.

The announcement also comes as the company revised upwards its revenue predictions for the financial year: It now expects to make 3.8 trillion yen ($24.26 billion USD), an increase of 11.8% from its previous prediction of 3.4 trillion yen ($21.64 billion).