autoevolution
 

Toyota, Massive Restructuring

Japanese manufacturer Toyota is setting the scene for the biggest, most extensive changes in its top management ever made by the company. Akio Toyoda, grandson of the Japanese manufacturer’s founder, will take over as president of the company next month, according to The Financial Times.

Forty percent of the company’s senior managers will be replaced worldwide. The tough measures to be taken next month can largely be attributed to the first financial loss posted by the manufacturer for fiscal year 2008. In all, Toyota reported an operating loss of 461.0 billion yen ($4.74 billion).

Toyota plans a major restructuring of its North American operations as well. Yoshi Inaba, a former company senior executive, will be called back from retirement to take charge of the North American branch.

Rumors said from some time that Toyota is planning restructuring for all of its manufacturing, financial and sales divisions in the US and appoint Inaba as head of all of these three units.

What the effects of these moves will be remain to be seen. The Japanese manufacturer has no big hopes for 2009, as it expects losses perhaps even greater than the ones brought by 2008. With forecasts showing a drop of some 1 million units sold for the current year, the operating loss is expected to stand at around $8 billion.

"Of course the external environment doesn't help, but we were lacking in the scope and speed of dealing with various problems and issues, and for that I am sorry," Katsuaki Watanabe, Toyota’s president said upon announcing the results.

The new management, including Akio Toyoda as president, will be announced at the annual shareholders' meeting on June 23.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories