Toyota makes Finance Chief Kenta Kon as CEO amid Tariffs and Competition

Toyota announced a major leadership change effective from April 1, 2026, despite its strength through industrial changes.

Toyota, Japan’s top automaker had announced that its current Chief Financial Officer, Kenta Kon, will become the next Chief Executive Officer and president of Toyota.

Following the 43% drop in quarterly profit yesterday, Toyota is reshaping its leadership in the right time for the global auto industry, placing its financial executive in charge as competition from Chinese automakers build up, EV strategies remain uncertain, and tariffs continue to cloud long-term planning.

As per the leadership shift the present CEO, Koji Sato, will leave his position on April 1 after only three years in order to become Vice Chairman and take the newly created position of Chief Industry Officer, which will concentrate on more extensive industry oversight. Sato told reporters that this expresses their determination to move toward change with all their power and he calls the latest personnel changes part of a “gear shift.”

Minority investors criticized this change due to issues with valuation and transparency. While Sato, the previous CEO, switches to manage the industry's transition from electrification to software development and Kon, as CEO, will concentrate on internal management and financial performance.

The impact of U.S. President Donald Trump’s tariffs and growing material costs has caused difficulties for all Japanese automakers. According to Toyota, the manufacturer of the Camry automobile and the luxury Lexus models, tariffs cost the company's operational profit last year 1.45 trillion yen ($9.2 billion).

Toyota executives emphasized that Sato would not be removed because of a problem, pointing out that the company's most recent financial results demonstrated that it was still performing well in spite of external challenges like the tariffs. The company also stated that, in order to further progress its transition into a mobility company, Toyota must not only enhance industry cooperation but also broaden partnerships outside of the industry.