Akio Toyoda New Toyota President
Akio Toyoda, moreover, is the son of Shoichiro Toyoda, who headed the company between 1982 and 1992 and still today, at 83 years, is honorary chairman of the firm. For background, Akio Toyoda, currently occupying one of the executive vice president, was considered for years as the heir to the empire Toyota, but the rapidity of his rise to power has surprised, since its 52 years is considered too young to become president of a company, according to Japanese royalty. “This has happened one or two years before than expected,” said Mamoru Kato, analyst at Tokai Tokyo.
“This crisis is of unprecedented magnitude in 100 years. We need a new generation to carry out bold reforms,” he justified the change of board chairman Fujio Cho told a news conference.
Toyota, like many other global car manufacturers is heavily affected by the crisis. The company also announced Tuesday that its worldwide sales fell by 4% in 2008, and remained at 8.97 million vehicles, because the global economic slowdown hit demand. Domestic sales fell 5% to 2.15 million units, while overseas were down 4% and remained at 6.82 million vehicles, said Japan’s first automobile manufacturer in a statement.
In late December, Toyota said it expects to suffer the first losses in its history in the year 2008-2009, which expires at the end of March.
According to Tuesday’s edition of Yomiuri Shimbun, the group plans to eliminate an additional 3,000 jobs in Japan, announcing in November that it would lay off 3,000 temporary employees by the end of March 2009. A Toyota spokesman declined to confirm the information.
All these contingencies squarely hit a company renowned for its effectiveness and which many considered invincible. Until recently, Toyota was intended to be the first builder in history to sell more than 10,000 million vehicles a year.
Upon announcement of the name of the future president, Akio Toyoda said he was “impressed by the great responsibility” during a news conference. “I will return to the principles which governed the foundation of our company and, without being imprisoned by the past, I will lead the strongest possible reforms,” he added.
Analysts said the appointment of Toyoda breaks with the policy of expansion at all costs conducted by the two former presidents, Watanabe and Hiroshi Okuda.
Experts also estimate that is the choice of Toyoda, a member of the founding family, is a highly symbolic measure, intended to change the mood of workers.
