A Toyota dealership is seen on November 19, 2025 in Austin, Texas.
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Toyota Motor announced Friday that Chief Executive Officer Koji Sato will step down and be replaced by its Chief Financial Officer, Kenta Kon, marking the automaker’s second CEO transition in three years.
The leadership shakeup will take effect on April 1, with Sato assuming the position of vice chairman and a newly created role as chief industry officer.
“Under this new leadership structure, Sato will focus on the broader industry, including Toyota, as Vice Chairman and CIO, while Kon will focus on internal company management as President and CEO,” the company said in a statement.
In a press briefing following the announcement, Kon likened the switch to Sato becoming “captain of the national team,” and Kon the “club captain.”
Sato explained the change was made so he could focus on leveraging his new roles as chairman of the Japan Automobile Manufacturers Association and as vice chair of Keidanren, Japan’s most influential business lobby. Sato had been appointed CEO in 2023, succeeding longtime leader Akio Toyoda.
Executive Vice President Yoichi Miyazaki will take over Kon’s old position as CFO. Meanwhile, Toyota plans to make further board changes in June 2026, with Kon joining as a director and Sato resigning from his board seat.
Toyota added that the leadership changes will help speed up decision-making amid industry challenges and accelerate its transformation into a more diversified mobility company.
Sales revenue for the December quarter reached 13.46 trillion Japanese yen, up 8.6% from the same period the year prior. That beat LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate, by 10%.
However, operating income fell to 1.19 trillion, down 2% amid continued impacts from U.S. tariffs.
Shares were trading up 1.5% on Friday following the news.
Toyota has been increasing its focus on electrified vehicles, including EVs and hybrids, amid tough global competition.
That was reflected in its earnings, also announced on Friday, which showed that electrified vehicles have accounted for nearly half of its retail vehicle sales in the first three quarters of its fiscal year.
Sales were driven by strong demand for hybrid vehicles in regions such as North America and China.
Toyota raised its full-year operating profit forecast by 11.8%, citing a weak yen and cost reductions to help offset the impact of U.S. tariffs.
