Toyota Is Changing Its President, But ‘Mission of Contributing to Society’ Will Stay the Same

By Tadashi Isozumi / Yomiuri Shimbun Senior Writer

17:17 JST, March 31, 2026

“Toyota’s management equals Japan’s management.”

Osamu Suzuki, who held such positions as president and chairman of Suzuki Motor Corp. before he passed away in 2024, made this incisive remark during a 2019 dialogue with Akio Toyoda, who was then president of Toyota Motor Corp.

As Toyota sells cars in over 200 countries and regions worldwide, its president must be sensitive to international affairs. He must constantly monitor the actions of regulatory authorities in each locality. He must protect both its own employees and those working at affiliated firms and suppliers. Every day, he must make decisions about countless matters that are brought before him. In all likelihood, he never has a moment of rest.

Toyoda, now the company’s chairman, assumed the presidency in 2009 and lasted 14 years. He once said, “Inside the company, being president is a lonely task.”

Optimizing management

On Feb. 6, Toyota announced it would have a new president, following a three-year stint by the current office holder.

Effective April 1, President Koji Sato will become vice chairman, and Kenta Kon, an operating officer, will succeed him as president. Sato will also assume the newly established role of chief industry officer at the company and focus on his roles as chairman of the Japan Automobile Manufacturers Association (JAMA) — a position he assumed in January — and vice chair of Keidanren (Japan Business Federation), having assumed the post in May 2025. Kon, who has been engaged in accounting operations at Toyota, is expected to improve the company’s earning power. Toyoda will remain Toyota’s chairman.

According to its announcement, the company viewed decisions on top management as “an important matter” to be reviewed on an ongoing basis. Discussions were held at Executive Appointment Meetings, where outside directors hold a majority. The meetings are attended by Executive Vice President Yoichi Miyazaki and two outside directors, Shigeaki Okamoto and Kumi Fujisawa. Amid this process, in October 2025, JAMA requested that Sato become its next chairman, expressing hope that he would serve as the industry’s “coordinator.” Deciding that “contributing to the industry is Toyota’s responsibility,” the company’s Board of Directors approved Sato’s appointment as JAMA chairman effective January 2026.

Executive Appointment Meeting members then discussed how Sato holding the roles of Toyota president, JAMA chairman and Keidanren vice chair concurrently could impact the company’s management. In light of environmental changes and the individual strengths of executives, the panel examined the optimal new leadership structure so the company could fully address the management challenges it faces. This resulted in the announced personnel changes.

According to Toyota officials, Toyoda was not involved in this process. However, even if he was not involved in the specific choices, it is almost certain that Toyoda’s drive to “make Japan better” formed the basis of decisions.

Declaration of resolve

At the company’s shareholders meeting in June 2020, when the world was gripped by the COVID-19 pandemic, Toyoda, as president at the time, declared his resolve before the assembled shareholders:

“With the spread of COVID-19, the world is facing a crisis of even greater proportions (than the 2008 financial crisis),” he said, adding, “Our worksites executed the appropriate actions,” although he did not order them to do so.

“I firmly believe Toyota has grown stronger. It is my wish to use this strength to help those outside the company.”

He continued:

“The Toyota of today is different from when the global financial crisis struck. Even in the midst of the COVID-19 crisis, Toyota is strong enough to be able to think about the well-being of the automotive industry, the well-being of the Japanese economy, the well-being of the Earth itself and the well-being of future generations of children. Toyota has finally managed to begin its journey to become a company that people can depend upon.”

These remarks were rooted in the philosophy of Sakichi Toyoda, founder of the Toyota group and Akio Toyoda’s great-grandfather. The first passage of the “Five Main Principles of Toyoda,” which were introduced on Oct. 30, 1935, and collected the teachings of the late Sakichi, reads:

“Always be faithful to your duties, thereby contributing to the company and to the overall good.”

All employees, from top to bottom, uniting in devotion to their work and contributing to the nation and society through industrial development. This ideal has been a constant, living principle since the Toyota group’s early days.

Fulfilling roles

About six years have passed since that shareholders meeting amid the pandemic. While Toyota posted a consolidated net loss of 436.9 billion yen in the fiscal year ended March 2009 in the wake of the financial crisis, it never recorded a loss during the pandemic.

For the fiscal year ending March 2026, Toyota projects sales revenue of 50 trillion yen and a net profit of 3.57 trillion yen. Given that tariffs introduced by U.S. President Donald Trump’s administration have caused the operating profit to fall by an estimated 1.45 trillion yen, the projected net profit is comparable to the record achieved in the fiscal year ended March 2024 of 4.94 trillion yen.

Now the company is looking to move forward, with its personnel shakeup showing its commitment to “working wholeheartedly for Japan.”

Toyoda will focus on developing next-generation talent and promoting cultural activities. Sato will push industrial collaboration to explore “Japan’s winning strategies.” Kon will improve Toyota’s earning power to ensure the company can continue investing with an eye to the future.

“Toyota’s role within the industry is growing larger than ever,” said Sato. “To energize both the automotive industry and Japan, we will focus on fulfilling our respective roles within our new formation.”

Investing for Japan

Sato, who became president in 2023 and is stepping down after just three years, likely struggled within himself over this change in roles.

“Isn’t three years short (for a president)?” he was asked during a press conference about the personnel change.

“Honestly, I do think it’s short,” he replied, adding, “It’s only three years, but it’s also three whole years.

“The pace of the auto industry doesn’t ease up … I feel that in the current situation, I must not make this about me. Putting ‘me’ at the center clouds your judgment.” As he spoke, his expression seemed to indicate that he had come to terms with the change.

Though he only served for three years, he shouldered what Suzuki called “Japan’s management.” Sato should go forward with confidence. In the current generation, only Sato and Toyoda have done this. He is expected to leverage the insights from those intense three years in his next role.

Kon, the next president, said at the press conference: “Profits aren’t generated by Toyota alone. We must invest solidly not just for ourselves, but for others, for the entire automotive industry and for Japan. I intend to make that effort.” Well put. He is one to keep an eye on.

This article was originally distributed by DOW JONES YOMIURI SHIMBUN Pro on Mar. 23, 2026.