Bolstering Profitability: Toyota Appoints CFO As Its Leader
Toyota Motor Corporation has announced that current Chief Financial Officer (CFO) Kenta Kon will assume the role of President and CEO of the company on 1 April 2026.
Addressing the leadership changes in a statement, Toyota says they are “intended to accelerate management decision-making in response to changes in the internal and external environment and to establish a structure that will enable Toyota to fully carry out its mission of contributing to society through industry."
Current CEO Koji Sato, who has been in the role since 2023, will assume the position of Vice Chairman and the newly established role of Chief Industry Officer.
The changes come as Toyota reports its third-quarter earnings, for the period ending 31 December 2025, showing a complex picture of record-high revenue alongside a decline in net profit due to the impact of tariffs.
Operating through a complex financial background
Operating profits fell to ¥1.191tn (US$7.6bn), a slight decrease from the previous quarter, net income dropped over 40% year-on-year to ¥1.257tn (US$8tn) for the quarter, yet revenue grew nearly 8% to ¥13.457tn (US$85.69tn).
Despite the quarterly drop, the firm has raised its full-year operating profit forecast to ¥3.8tn (US$24.19), up from ¥3.4tn (US$21.65tn), for the year ending 31 March 2026, citing a weak yen and cost-cutting measures.
Toyota outlines that improving the company’s earning power is “the foundation for continuing to make ever-better cars” and “lowering break-even volume” is a key priority.
“To achieve this, it is necessary to lead reforms across the entire company,” the firm adds, “not through functional segmentation but by addressing the value chain as a whole.”
Kenta’s appointment is a reflection of his performance as CFO: performing at the forefront of efforts to improve the company’s earning structure.
Koji Sato’s time as CEO
When Toyota announced Koji as part of its new leadership team in February 2023, his strategy focused around “drastically” accelerating the role out of new EVs as part of his goal to reinvent the world’s largest automaker as a mobility company.
During a press conference at the time, the appointed CEO said he would prioritise a three-pronged strategy:
- Ramp up the carmaker’s EV strategy
- Strengthen its Woven-related software-first initiatives
- Focus on achieving carbon neutrality in Asia
Throughout his almost three years in the role, he has taken a multi-pathway approach, balancing BEVs, plug-in hybrids and hydrogen, tailored to regional demand.
Passing over the leadership baton
In the recent company announcement, Toyota says that to continue advancing its transformation into a mobility company, “it is necessary not only to strengthen industry collaboration but also to expand partnership beyond the industry”.
To achieve this, Koji is gaining the role of Chairman of Japan Automobile Manufacturers Association Inc. (JAMA), and continuing his Vice Chair of KEIDANREN (Japan Business Federation), which he was appointed in May 2025.
In the latter role, Toyota says he is expected to promote policy proposals centred on manufacturing and advance industry collaboration to enhance Japan’s industrial competitiveness.
The proposal of these leadership changes were approved in an Executive Appointment Meeting held on 6 February, as it is seen as the “optimal new leadership structure” in the current environmental changes and plays to the individual strengths of the execs.
