Toyota Motor (NYSE:TM) announced a major leadership transition on Friday, appointing Chief Financial Officer Kenta Kon as its next President and CEO to spearhead a "nimble" turnaround after a bruising quarter marked by a 43% drop in profit.
Kenta Kon, 57, a Toyota veteran and close ally of Chairman Akio Toyoda, will take the reins on April 1, 2026.
He replaces Koji Sato, who is stepping down after three years to focus on broader industry roles, including Chairman of the Japan Automobile Manufacturers Association (JAMA).
The appointment of a finance expert to the top role signals Toyota's urgent need for "experienced financial oversight" as it navigates a trade-war-induced earnings slump and intensifying competition from Chinese EV makers.
The leadership shuffle coincided with a grim third-quarter earnings report.
Toyota’s net profit for the October-December period fell to 1.25 trillion yen ($8 billion), down from 2.19 trillion yen the previous year.
The primary culprit was the aggressive return of U.S. trade protectionism; the company estimated that Donald Trump’s tariffs on Japanese vehicle exports erased a staggering 1.45 trillion yen ($9.2 billion) from its operating profit over the last year.
Despite these headwinds, global vehicle sales remained a bright spot, growing to 7.3 million units for the nine-month period as demand for hybrids continued to surge in North America and Europe.
"This expresses our determination to move toward change with all our might," Sato told reporters, characterizing the move as a strategic "gear shift."
Kon, who has previously overseen automated driving initiatives and the "Mobility 3.0" office, acknowledged the internal challenges ahead, noting that the company must become more agile.
Despite the quarterly profit plunge, Toyota maintained its full-year forecast of 3.57 trillion yen—a 25% year-over-year decline—sending Toyota shares up 2% as investors welcomed the clarity on leadership and the bankable stability of its hybrid-led sales growth.