Toyota’s outgoing CEO Koji Sato (left) and incoming CEO Kenta Kon (right) pose for a photo after a press conference in Tokyo on February 6, 2026.
Tomohiro Osumi | Getty Images News | Getty Images
toyota motors announced on Friday that CEO Koji Sato will step down and be replaced by Chief Financial Officer Kenta Kon. This is the company’s second CEO change in three years.
The management shake-up will take effect on April 1, with Sato becoming vice chairman and creating the new position of chief industrial officer.
“Under this new management structure, Mr. Sato will focus on a wide range of industries, including Toyota, as vice chairman and chief information officer (CIO), while Mr. Kon will focus on internal management as president and chief executive officer (CEO),” the company said in a statement.
At a press conference after the announcement, Kon compared the change to Sato becoming the “captain of the national team” and now becoming the “captain of the club.”
Sato said the move was to focus on leveraging his new role as chairman of the Japan Automobile Manufacturers Association and vice chairman of Keidanren, Japan’s most influential economic organization. Sato was appointed CEO in 2023, replacing longtime leader Akio Toyoda.
Mr. Kon’s predecessor as CFO will be Vice President Yoichi Miyazaki. Meanwhile, Toyota is planning further changes to its board of directors in June 2026, with Mr. Ima taking office as a director and Mr. Sato resigning as director.
Increased profit forecast
Toyota added that this leadership change will speed up decision-making amid industry challenges and accelerate its transformation into a more diversified mobility company.
Sales for the December quarter increased 8.6% year-on-year to 13.46 trillion yen ($85.8 billion), exceeding LSEG SmartEstimates by about 10%. This estimate emphasizes analyst forecasts with higher historical accuracy.
Operating profit fell 2% to 1.19 trillion yen, reflecting continued pressure from U.S. tariffs. This result still exceeded LSEG’s average estimate of 1.09 trillion yen.
Shares rose 1.5% on Friday on the news.
Amid fierce global competition, Toyota is increasing its focus on electric vehicles such as EVs and hybrids.
The company announced Friday that electric 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 cost cuts to offset the impact of a weaker yen and U.S. tariffs.
