Toyota planning major management rejig next month: Report

LONDON: Japanese car maker Toyota Motor is planning one of its most major management reshuffles in 70 years of existence next month, when Akiko Toyoda will take over as company's chief executive, says a media report.

"Toyota Motor is planning one of the most drastic management overhauls in its 70-year history next month when Akio Toyoda, grandson of the Japanese car company's founder, takes over as chief executive," the Financial Times said.

Toyota, which has posted a net loss of 437 billion yen ($4.5 billion) in recent financial year, would replace 40 per cent of its senior managers and is said to be preparing a sweeping reorganisation of its key North American business that would unify its separate sales and manufacturing arms, the report said.

Meanwhile, FT said that analysts and company insiders believe management changes are designed to cement the leadership of 52-year Toyoda and to signal a clear break with the regime of Katsuaki Watanabe, the current chief executive who would become vice-chairman.

Earlier in January, the company had said Toyoda currently an executive vice-president, would replace Watanabe after shareholders approval on June 23.

The report said management team Toyoda has been building in the meantime would be charged with restoring Toyota to its long-envied position as the world's most profitable car maker.

As per the revamped management scheme, half the directors on Toyota's 29-member board would be new to their positions, the FT said.

Further, Toyota would have four new executive vice-presidents out of an expanded total of five, with three current executive vice-presidents retiring, including Mitsuo Kinoshita, the finance director who had been Toyoda's closest rival for the chief executive's job.

At the level directly below the board, Toyota would appoint 18 new executive managing directors out of a slightly expanded total of 50, all from within the company or its subsidiaries, the report noted.

In addition to promoting younger executives, Toyoda might bring back several veteran managers who had retired or been sidelined under Watanabe regime, it added.

Quoting several people close to the group's plans, FT said Toyota was considering unifying its California-based US sales operation and Kentucky-based manufacturing unit under a single management structure, possibly based in New York.