Toyota Names Finance Chief Kenta Kon as Next CEO

Reuters

Toyota Motor's outgoing Chief Executive Koji Sato and incoming CEO Kenta Kon attend a press conference in Tokyo, Japan 6 February 2026.

Toyota on Friday announced that its chief financial officer, Kenta Kon, will become the company’s next chief executive officer, in a surprise leadership change as the world’s largest automaker faces intensifying competition from fast-growing Chinese rivals.

Kon, a close ally and former secretary of Chairman Akio Toyoda, will assume the role on 1 April. Current CEO Koji Sato will step down after just three years in the position to become vice chairman and take on the newly created role of chief industry officer.

Known for his strict cost discipline, Kon is widely regarded as the architect of the proposed buyout of forklift subsidiary Toyota Industries. 

Kon served as Toyoda’s personal secretary from 2009, when Toyoda became CEO, until 2017, before being appointed head of Toyota’s accounting division. Toyoda, the grandson of the company’s founder, led the automaker for nearly 14 years before naming Sato as his successor.

The leadership reshuffle was announced alongside Toyota’s third-quarter earnings, with the company raising its full-year operating profit forecast by almost 12%, supported by a weaker yen and continued cost-cutting measures. Toyota shares reacted positively, closing 2% higher on the day.

The global automotive industry is under mounting pressure as Chinese manufacturers rapidly reshape the market. Toyota has fared better than many competitors, largely due to its long-standing emphasis on petrol-electric hybrid vehicles.

While several rivals have absorbed heavy losses following aggressive investment in battery electric vehicles — including Stellantis, which on Friday announced a $26.5 billion writedown — Toyota’s hybrid strategy has underpinned record sales and allowed it to retain its position as the world’s top carmaker last year.

Under the new management structure, Kon will focus on internal operations, while Sato will concentrate on broader industry and strategic issues. The changes are intended to accelerate decision-making as competition from Chinese automakers intensifies.

Speaking at a press conference, Kon said he was taken by surprise when first approached about the role last month, admitting his “mind went completely blank”. Sato said Toyoda was not involved in the decision.

Kon also oversees financial operations at Toyota’s mobility technology subsidiary, Woven by Toyota — experience that may prove valuable as the company seeks to narrow the software gap with Chinese competitors.

Sato assumed the CEO role in April 2023 amid criticism of Toyota’s cautious approach to battery electric vehicles. During his tenure, the company’s shares delivered a total return of 111%, including dividends, outperforming the Nikkei index, despite losing market share in regions such as Southeast Asia to rivals including China’s BYD.

Source: Reuters



PUKMEDIA