Toyota appoints CFO Kenta Kon as new CEO in surprise leadership reshuffle

By Nicholas Takahashi

 

Toyota Motor Corp. appointed Kenta Kon as its new chief executive officer, a surprise leadership reshuffle in the midst of a high-profile bid to privatize a key unit.  

Kon, who is currently Toyota Motor’s chief financial officer, will assume the top job on April 1, the company said Friday. He replaces Koji Sato, who was appointed CEO in 2023 and will become vice chairman and take on a newly established role as chief industry officer.

 

Toyota said it promoted the finance chief amid an urgent need to bolster profitability. Meanwhile, Sato will use his role as head of the Japan Automobile Manufacturers’ Association to steer the broader industry.

 

 

“This change in roles is intended to accelerate management decision-making in response to changes in the internal and external environment,” the company said in a statement. Toyota has “considered the optimal new leadership structure in light of the current environmental changes and the individual strengths of each executive,” it said.

 

The shakeup coincides with a high-profile deal for the Toyota group, which is pushing to take Toyota Industries Corp. private in a tender offer that closes next week. The effort is facing strong pushback from activist investor Elliott Investment Management, which has argued that the proposal undervalues the company, and turned the potential buyout into a test of Japan’s corporate governance reforms. 

 

Kon is currently a director at Toyota Fudosan Co., which is leading the buyout. Akio Toyoda will retain his position as chairman at both Toyota Fudosan and Toyota Motor.

 

The CEO announcement coincided with Toyota Motor raising its full-year profit guidance after record sales made up for the costly fallout of US tariffs on imported cars and auto parts.

 

The world’s biggest carmaker now forecasts 3.8 trillion yen ($24 billion) in operating profit for the fiscal year ending in March 2026. That’s up from its previous outlook for 3.4 trillion yen and just shy of analyst expectations for 3.9 trillion yen.