Japan's top automaker Toyota taps earnings expert as its chief amid declining profits
TOKYO -- Japan’s top automaker Toyota reported a 43% drop in quarterly profit Friday, and announced Chief Financial Officer Kenta Kon will become its new chief executive and president.Kon, a Toyota veteran, replaces Koji Sato in both roles in April.Shareholders’ approval is expected in June.“This expresses our determination to move toward change with all our might,” Sato told reporters, calling the latest personnel changes part of a “gear shift.”Sato remains vice chairman at Toyota Motor Corp.
Kon, who has hands-on experience in various fields, including automated driving, was tapped as an expert on ways to improve company earnings, according to Toyota.All the Japanese automakers have been struggling because of rising material costs and the impact of U.S.President Donald Trump’s tariffs.Toyota, which makes the Camry sedan and Lexus luxury models, estimated the negative impact of tariffs erased 1.45 trillion yen ($9.2 billion) from its operating profit last year.
For the October-December quarter, group profit at Toyota totaled 1.25 trillion yen ($8 billion), down from 2.19 trillion yen the same period the previous year.For the nine months through December, Toyota reported a 26% decline in profit at 3.03 trillion yen ($19 billion) from 4.1 trillion yen, even as sales gained nearly 7% to 38 trillion yen ($242 billion) from 35 trillion yen the previous year.Global vehicle sales for the nine months grew to 7.3 million vehicles from about 7 million vehicles, as sales increased in Japan, North America and Europe.Sato, Toyota chief for the last three years, will continue to hold a key industry role as chairman of JAMA, or Japan Automobile Manufacturers Association, starting in January.
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