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Toyota CEO Sato to step down, to be replaced by CFO Kon
| USA | economy

Toyota CEO Sato to step down, to be replaced by CFO Kon

#Toyota #Kenta Kon #Koji Sato #Akio Toyoda #Automaker #CEO transition #Electric Vehicles #Operating Profit

📌 Key Takeaways

  • CFO Kenta Kon will replace Koji Sato as Toyota CEO effective April 1, 2026.
  • The move aims to strengthen financial management against rising competition from Chinese EV makers.
  • Outgoing CEO Koji Sato will take on a new role as Chief Industry Officer and Vice Chairman.
  • Toyota raised its annual profit forecast by 12% due to cost-cutting and a weak yen.

📖 Full Retelling

Toyota Motor Corporation announced a major leadership transition in Tokyo on February 6, 2026, naming current Chief Financial Officer Kenta Kon as the company’s next Chief Executive Officer to better navigate intensifying global competition. Effective April 1, Kon will succeed Koji Sato, who is stepping down after a three-year tenure to assume the newly established role of Chief Industry Officer and serve as the company’s vice chairman. This strategic shuffle comes as the world's largest automaker seeks to bolster its financial management and accelerate decision-making processes in the face of rapid disruption from Chinese electric vehicle manufacturers. Kenta Kon, recognized as a close confidant of Chairman Akio Toyoda, brings a background rooted in rigorous cost-control and accounting. During his time as CFO, Kon was instrumental in orchestrating the proposed buyout of subsidiary Toyota Industries, a move intended to consolidate the founding family's influence despite some pushback from minority shareholders regarding transparency. His promotion signals a shift in focus toward internal corporate management and financial efficiency, whereas his predecessor, Sato, was primarily known for his expertise in product development and engineering. The leadership change was revealed alongside Toyota's third-quarter earnings report, which displayed robust financial health despite the competitive landscape. The automaker raised its full-year operating profit forecast by nearly 12%, buoyed by significant cost-reduction initiatives and a favorable exchange rate due to a weaker yen. Analysts suggest that Kon’s experience with Woven by Toyota, the company’s mobility technology arm, will be critical as the firm attempts to bridge the software and technology gap between its current fleet and those of tech-heavy Chinese rivals like BYD. Retiring CEO Koji Sato presided over a period of significant stock growth, with Toyota shares rising 111% during his leadership. While Sato successfully defended Toyota’s strategy of prioritizing gasoline-electric hybrids—a bet that resulted in record sales—the company has faced mounting pressure regarding its perceived delay in the transition to fully electric battery vehicles. In his new capacity as Chief Industry Officer, Sato will pivot toward broader industry engagement, allowing Kon to handle the immediate administrative and financial complexities of the automotive giant.

🏷️ Themes

Corporate Governance, Automotive Industry, Leadership

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week 3 reasons why Bitcoin is falling Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets (South Africa Philippines Nigeria) Toyota names close ally of chairman Toyoda as next CEO Stock Markets Published 02/06/2026, 12:12 AM Updated 02/06/2026, 03:54 AM Toyota names close ally of chairman Toyoda as next CEO 0 JP225 0.89% Argentinian Peso Japanese Yen 0.00% Japanese Yen Swiss Franc -0.01% Japanese Yen Euro -0.16% Japanese Yen British Pound -0.37% Japanese Yen US Dollar 0.00% 1211 1.15% 6201 1.66% 7203 2.00% By Daniel Leussink TOKYO, Feb 6 - Toyota on Friday named finance boss Kenta Kon, a close ally of Chairman Akio Toyoda, as its next chief executive, as the world’s largest automaker grapples with deepening competition from fast-moving Chinese rivals. The surprise move will see current CEO Koji Sato step down from April 1 after just three years at the helm to become vice chairman and take on the newly created role of chief industry officer. As chief financial officer, Kon is known for his ability to keep a tight lid on costs. He is also widely seen as the architect of a planned buyout of forklift subsidiary Toyota Industries . The deal, which would strengthen the Toyoda founding family’s control of the Toyota group, has been opposed by minority shareholders who have criticised it as lacking transparency and being greatly underpriced. Before rising through the ranks of the accounting department, Kon spent time as the head of the automaker’s secretarial department while Toyoda was CEO. Toyoda, the grandson of the automaker’s founder, was chief executive for almost a decade and a half before he named Sato as his successor. The announcement was made in tandem with the release of Toyota’s third-quarter earnings, where it boosted its outlook for full-year operating ...

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