Toyota promotes finance chief Kenta Kon as CEO in second leadership change in 3 years
Toyota Motor has announced that its chief executive Koji Sato will step down, and be replaced by the automaker’s chief financial officer, Kenta Kon.
BigThink
Outgoing Toyota CEO Koji Sato (L) and incoming CEO Kenta Kon (R) pose during a photo session after a press conference in Tokyo, Japan on February 06, 2026.
Tomohiro Ohsumi | Getty Images News | Getty Images
Toyota Motor announced Friday that Chief Executive Officer Koji Sato will step down and be replaced by its Chief Financial Officer, Kenta Kon, marking the automaker's second CEO transition in three years.
The leadership shakeup will take effect on April 1, with Sato assuming the position of vice chairman and a newly created role as chief industry officer.
"Under this new leadership structure, Sato will focus on the broader industry, including Toyota, as Vice Chairman and CIO, while Kon will focus on internal company management as President and CEO," the company said in a statement.
In a press briefing following the announcement, Kon likened the switch to Sato becoming "captain of the national team" and Kon the "club captain."
Sato explained the change was made so he could focus on leveraging his new roles as chairman of the Japan Automobile Manufacturers Association and as vice chair of Keidanren, Japan's most influential business lobby. Sato had been appointed CEO in 2023, succeeding longtime leader Akio Toyoda.
Executive Vice President Yoichi Miyazaki will assume Kon's former position as CFO. Meanwhile, Toyota plans to make further board changes in June 2026, with Kon joining as a director and Sato resigning from the board.
Profit outlook raised
Toyota added that the leadership changes will help speed up decision-making amid industry challenges and accelerate its transformation into a more diversified mobility company.
Sales revenue for the December quarter rose 8.6% from a year earlier to 13.46 trillion yen ($85.8 billion), beating LSEG SmartEstimates by about 10%. The estimates are weighted toward forecasts from analysts with stronger historical accuracy.
Operating income fell 2% to 1.19 trillion yen, reflecting continued pressure from U.S. tariffs. The result still topped LSEG's mean estimate of 1.09 trillion yen.
Shares were trading up 1.5% on Friday following the news.
Toyota has been increasing its focus on electrified vehicles, including EVs and hybrids, amid tough global competition.
The company said Friday that electrified vehicles accounted for nearly half of its retail vehicle sales in the first three quarters of its fiscal year.
Sales were driven by strong demand for hybrid vehicles in regions such as North America and China.
Toyota raised its full-year operating profit forecast by 11.8%, citing a weak yen and cost reductions to help offset the impact of U.S. tariffs.
