With eye on Tesla, Toyota’s new CEO proposes changes to embrace EV Future

Hiroki Nakajima becomes chief technology officer and Yoichi Miyazaki will be chief financial officer from April 1, when Sato is slated to take over from Akio Toyoda, the Japanese automaker said in a statement Monday. Both executives will join the board of directors, along with newly appointed Chief Branding Officer Simon Humphries.

The world’s No. 1 carmaker is spending ¥4 trillion ($31 billion) to roll out 30 electric vehicle models by 2030. Yet, its strategy of offering multiple options for car buyers — gasoline engines, hybrids, battery-based EVs and hydrogen-powered cars — has led to criticism that it isn’t shifting fast enough. At several points during a news conference to announce the new management lineup, Sato spoke about the importance of better communicating Toyota’s strategy.

“The notion that Toyota’s efforts to electrify are lagging — I think half of that comes down to communication," Sato said. Regarding the company’s new EV platform slated for 2026, he said further details will be announced in April.

Until now, Toyoda had been the carmaker’s chief communicator when it came to explaining Toyota’s shift to a electrified and carbon neutral future. The founder’s grandson, who will become chairman after 14 years at the helm, didn’t attend the briefing — a sign that he’s handing over authority to his successor.

Although Sato joined Toyota as a mechanical engineer in 1992, he also brings marketing credentials. He was chief branding officer and head of the Lexus luxury car division before being tapped to lead Toyota.

No women were included in the list of those promoted or assigned to Toyota’s new executive positions.

In addition to the management changes, Woven Planet Holdings Inc. will change its name to Woven by Toyota Inc. The unit, which works on autonomous driving software and a smart city, is meant to shape Toyota’s future technologies.

Sato said “inheritance and evolution" are themes for the new leadership, repeating his predecessor’s thesis that, while battery EVs are important, the company needs to provide a wide range of options.

The new CEO likened his executive lineup to a soccer team, one in which every individual plays a unique role but must rely on each other to pursue a common goal — providing customers with satisfactory products and services, and reducing and eventually eliminating the gargantuan carmaker’s carbon emissions.

“My role, as captain, is to maximize the team’s potential," he said.

In late January, Sato’s appointment to CEO was announced abruptly via Toyota Times News, the company’s in-house publicity apparatus. That drew criticism for being more like a television segment rather than a normal press conference.

“I received countless opinions afterward on the way the announcement was made," Sato said Monday. “All of us on stage, we’re nervous. Moving forward we want to improve our communication skills and maintain open communication with our customers and the public."

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