Business Maverick: Toyota Names New CEO as Tesla-Led EV Shift Threatens Its Dominance

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Toyota Motor Corp. will elevate the head of Lexus to replace long-time CEO Akio Toyoda, who steered his grandfather’s carmaker to the top of the automotive ranks while leaving a lane open for Tesla Inc. to lead in fully electric vehicles.

in 2020. Elon Musk’s years of brash expansion also has emboldened countries to phase out combustion engines earlier than the maker of the Prius believes is feasible, saddling Sato, 53, with the twin challenges of playing catch-up and convincing regulators that more time to transition is warranted.

In early 2016, he was appointed chief engineer of Lexus International, and in April the following year, ascended to chief of Toyota’s luxury division. In September 2020, Sato was also appointed president of Gazoo Racing, Toyota’s motor sports and performance brand. He wasSato taking over from Toyoda “will rejuvenate the firm’s management while maintaining policy consistency,” Bloomberg Intelligence analyst Tatsuo Yoshida said in a note.

“Toyoda’s choice to remain as chairman will help maintain the company’s business strategy and continuity,” BI’s Yoshida said. A graduate of Keio University in Tokyo in 1979, Toyoda joined the family business in 1984 and became a board member in 2000.

 

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