Toyota’s CEO will step down from the company his grandfather founded.
He handed over to the head of its Lexus luxury brand as the Japanese conglomerate struggles to meet the transition to electric vehicles.
Koji Sato, the 53-year-old chief branding officer and president of Toyota Motor Corp’s Lexus brand, will take over as chairman on April 1 when Akio Toyoda retires.
The question of who will lead Toyota, Japan’s largest company and one of the world’s most influential manufacturers, has become increasingly important to investors.
However, the timing of the announcement was unexpected.
Under the 66-year-old Toyoda, the automaker has appeared reluctant to embrace electric vehicles.
It also touted hydrogen-powered cars as the future, raising fears it would be left behind by the rise of electric vehicles, as the flashier and more nimble Tesla Inc eclipsed it in both innovation and share price.
The succession announcement was broadcast on a webcast through the automaker’s Toyota Times channel in what looked more like a stilted talk show with a host rather than a formal corporate announcement.
