Published - February 13, 2023 @ 3:22 PM (EET)
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As Koji Sato prepares to take over as chief executive, Toyota Motor Corp. (NYSE:TM) unveiled several changes to its senior management, improving the carmaker's strategy and messaging to shift to an electric future.
Starting his new role as the head of the world's largest automaker on 1 April, Â Sato said it would ramp up its battery-electric offerings by focusing on its Lexus luxury brand.
At the briefing in Tokyo Monday, Sato said Toyota would develop new EVs by 2026, while everything in the Lexus models will be optimized for electric vehicles, including the battery and manufacturing platform.
However, taking over from longtime leader Akio Toyoda, Sato quickly pointed out that it was not a significant change in strategy and that Toyota would continue to pursue various technologies in its drive toward carbon-neutral vehicles.
WHY IT MATTERS
Spending $31 billion to roll out 30 electric vehicle models by 2030, the world's No. 1 carmaker's strategy of offering multiple options for car buyers has led to criticism that it isn't shifting fast enough.
"This is not a fast pivot towards battery EVs," Sato said, adding, "the notion that Toyota's efforts to electrify are lagging - I think half of that comes down to communication."
Toyoda, the founder's grandson and the carmaker's chief communicator for the past 14 years, did not attend the briefing, indicating that he is handing over authority to his successor.
Hiroki Nakajima will become the chief technology officer, and Yoichi Miyazaki will take over as chief financial officer. No women were included in Toyota's promoted or assigned list of new executive positions.
NOW WHAT
Among the multibillion-dollar investments is the $3.8 billion EV manufacturing facility in North Carolina, which Toyota expects would increase its global volume reaching 3.5 million annually.
However, given its price relative to its 52-week trading range, current Toyota shareholders would be wise to hold onto the stock and keep an eye on the profit-draining EV investments the company needs to make to catch up with the competition.
