Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2022 Auto News Canada All-Stars
    • 2022 Canadians To Watch
    • 2022 Diversity Champions
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
    • EVs Decoded
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Executives
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
    Koji Sato 900x540.jpg
    Reuters

    Koji Sato, shown at this year's Toyko auto show, will become Toyota CEO on April 1.

    TOKYO – Toyota Motor Corp. has tapped Koji Sato, the head of Lexus and the Gazoo Racing unit, to be the Japanese 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 after the announcement. 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 EV 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 Toyota for a new era while retaining all the corporate culture that has been the secret to the automaker’s success for so long.

    Toyoda is the grandson of Kiichiro Toyoda, the founder 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 trial 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 of the helm. 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 Co. 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 closely 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.” 

    RECOMMENDED FOR YOU
    New Subaru Canada CEO Tomohiro Kubota touring country, meeting dealers
    Recommended for You
    Subaru Canada Inc.’s new CEO Tomohiro Kubota
    New Subaru Canada CEO Tomohiro Kubota touring country, meeting dealers
    shoichiromain-main_i.jpg
    Shoichiro Toyoda, pilot behind Toyota's N.A. expansion and Lexus launch, dies at 97
    Jason Stoicevich
    Stellantis names Jason Stoicevich head of Canadian operations
    DSMA CEO on current mergers & acquisitions outlook
    Sponsored Content: DSMA CEO on current mergers & acquisitions outlook
    Digital Edition
    March 2023 Cover
    View latest issue
    See our archive
    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 today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

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

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2022 Auto News Canada All-Stars
      • 2022 Canadians To Watch
      • 2022 Diversity Champions
      • Best Dealerships To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
      • EVs Decoded
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS