This reorganization is intended as a formation change, one that enables us to dedicate all our energies to tackling the management challenges Toyota will face moving forward.
I believe there are two major challenges.
The first is the earning power that will sustain the company’s future. Enhancing our ability in this regard has become a critical priority.
At Toyota, we have spent the past two years strengthening our foundations. From here, given shifts in the external environment, we are entering a phase where we will pursue improved productivity, and even greater quality and affordability in our carmaking. The fact that we are at this inflection point is one key consideration.
The other is the need to accelerate industry collaboration.
For our auto industry to remain internationally competitive, I believe we need to unite as one, specify concrete areas of collaboration, and identify Japan’s path to success.
As cars evolve to be increasingly integrated into the infrastructure of society, I believe the key lies in collaboration with partners across different industries. In other words, as I see it, Toyota’s role within the industry is growing larger than ever.
Against this backdrop, the proposal from the Executive Appointment Meeting spurred us to consider the optimal leadership structure for Toyota in light of the current management challenges.
In doing so, we determined that a management team formation change is necessary for the future of Toyota and the industry. We discussed and approved the role changes in today’s board meeting.
Going forward, Operating Officer Kon will focus on the internal situation as president and CEO, driving initiatives to enhance the earning power I mentioned earlier. Operating Officer Kon is well-versed in accounting and finance and, as you will be aware, has most recently served as CFO of Woven by Toyota, giving him experience viewing Toyota from the outside and pursuing internal reforms across functional lines.
As we turn our initiatives into concrete action, and strive toward optimization that transcends individual functions, I believe Mr. Kon will leverage these strengths to provide effective leadership.
For my part, as vice chairman and chief industry officer, I intend to focus my efforts increasingly on industry-centered activities, including the Japan Automobile Manufacturers Association and Keidanren.
I will continue working on the frontlines to connect Toyota with the industry and accelerate collaboration across the sector. I am dedicated to making this happen and will strive to be a more dynamic presence.
At Toyota, we have always said that our work should revolve around roles, not titles. Since becoming president, I have consistently sought to ensure that the pace of management doesn’t slow, while continuing to take action. I believe this team approach to management has long been championed by Toyota’s leaders.
We want to energize the automotive industry and Japan. To contribute to this goal, we will focus on fulfilling our respective roles within the new formation. Once again, we ask for your continued understanding and support.