In the first quarter of 2023, there were several news in relation to change of top management of Japanese companies. One of them is the change of Chief Executive Officer (CEO) of Toyota. Toyota is one of the most important companies in Japan. In fact, it is the largest Japanese company in terms of both market capitalization and sales revenue in Japan. In addition, the Japanese automotive company has sold and produced more or less 10 million vehicles in a calendar year.

Its German rival, Volkswagen, has not coped with the difficult situation due to lack of semiconductors and high inflation rate. As a result, the company cannot restore pre-pandemic level of production and sales. Therefore, we think that Toyota has handled the situation better than other big automotive companies.

However, it decided to change its top management team. Koji Sato, who is former Lexus chief, is appointed as the new CEO of Toyota. The previous CEO (until the end of March, 2023), Akiko Toyoda, has been the position for 13 years. He faced the difficult situation including financial crisis, big earthquakes, the pandemic, chip shortage and others. Even though Toyoda solved difficult problems, the former CEO thinks youth is necessary to evolve the company.

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