Toyota announces leader switch, Kenta Kon new CEO

Toyota has unexpectedly switched up its top leadership, appointing Chief Financial Officer Kenta Kon as its new Chief Executive, replacing Koji Sato as of 1 April. Sato, who was appointed Chief Executive in 2023, will become Vice Chairman and take on a newly carved-out role as the automaker’s first Chief Industry Officer.

Toyota said in a statement that Kon will focus on managing Toyota’s internal affairs while Sato will keep an eye on developments in the broader automotive industry. It also stated that the switch-up was intended to accelerate decision-making, making Toyota more reactive to industry disruptions. Notably, Sato assumed an additional role as Chairman of the Japan Automobile Manufacturers Association, the country’s most important industry body, in January 2026. 

As Toyota’s Chief Financial Officer, Kon has been at the forefront of efforts to improve the automaker’s earnings structure. The company cited the cross-functional experience Kon has gained at Woven by Toyota, its mobility experimental city in central Japan. 

The announcement comes as the bid to privatise Toyota Industries reaches its critical stage. As it stands, the automaker needs to secure two thirds of all votes in order to proceed—at last check it had around 48%—and some investors are pushing back hard against the effort. Primary opponent, Elliot Investment Group, maintains the minimum price needs to be US$167 per share, roughly 38% higher than what Toyota has maintained is its ceiling. How Kon will navigate this bid remains to be seen.

Toyota recorded a net profit of US$8bn for the last three months of 2025, down 43% from a year earlier, with the bottom line in the prior year boosted by one-off gains related to foreign-currency-denominated assets. Tariffs and competitive pressure from Chinese entrants, as is the case for most if not all global players, also continued to ebb away profits. Still, the automaker lifted its full-year forecast for the financial year ending March, revising net profit to US$22.8 bn, up 22% from previous forecasts.

Toyota remained the world’s highest-selling automaker in 2025 as group sales rose 4.6% to a record 11.3 million vehicles. Sales growth was led by Japan and the US, where hybrid vehicles proved enduringly popular following the elimination of federal electric vehicle tax credits. The company announced in November it was investing more than US$900m to increase hybrid production in the US to meet growing demand, part of a wider plan to invest roughly US$10bn in the country through the rest of the decade.