Toyota mulls major mgmt rejig next month: report

Japanese car maker Toyota Motor is planning one of its most major management reshuffles in 70 years of existence next month, when Akiko Toyoda will take over as company's chief executive, says a media report.

"Toyota Motor is planning one of the most drastic management overhauls in its 70-year history next month when Akio Toyoda, grandson of the Japanese car company’s founder, takes over as chief executive," the Financial Times said.

Toyota, which has posted a net loss of 437 billion yen ($4.5 billion) in recent financial year, would replace 40 per cent of its senior managers and is said to be preparing a sweeping reorganisation of its key North American business that would unify its separate sales and manufacturing arms, the report said.

Meanwhile, FT said that analysts and company insiders believe management changes are designed to cement the leadership of 52-year Toyoda and to signal a clear break with the regime of Katsuaki Watanabe, the current chief executive who would become vice-chairman.

Earlier in January, the company had said Toyoda currently an executive vice-president, would replace Watanabe after shareholders approval on June 23.

The report said management team Toyoda has been building in the meantime would be charged with restoring Toyota to its long-envied position as the world's most profitable car maker.