Toyota Motor Company has taken some serious blows this decade given criticism of its vehicles and the economic meltdown that has affected every car company. In June of 2009, the company looked to the past when naming a new CEO – Akio Toyoda.
If the last name of Akio Toyoda seems oddly close to Toyota, it is by design. The Toyoda family started Toyota Motor Company. Sakichi Toyoda was an industrialist in the 1920s in Japan. He ordered his son, Kiichiro Toyoda, to develop an engine and then auto department as part of one of his companies. In 1937, that department was spun off into its own company – Toyota Motor Company. Akio Toyoda is the grandson of Kiichiro Toyoda.
So, just who is this Akio Toyoda? He is the youngest President of Toyota in its 80 plus year history. He joined the company in 1984 and worked his way up after graduating from Babson College in Wellesley, Massachusetts. It took him 16 years before he joined the board of Toyota in 2000. During a crisis of reputation at the company, he was made Executive Vice President in 2005. He remained in that position until the summer of 2009 when he ascended to the position of President and CEO of the company.
The Toyoda family has historically preferred family members to sit in positions of power with the company. The rise of Akio Toyoda, however, appears to be a different move entirely. This is not a case of a family member moving into a position to keep a company moving along its natural course. No, the rise of Akio is a revolution of sorts at Toyota. Why? He seems to be coming in with a mandate. Along with his appointment, four vice-presidents and a whopping eight board members are being replaced. If Toyota was a country, we would be talking revolution!
So, is this a radical change at Toyota? It may well be. The company has expanded massively in the last 15 years. It is now the largest car company in the world. At the same time, the reason for its popularity has been undercut. Quality was always the overriding theme with Toyota. When you purchased a Toyota, you knew the vehicle would always run and perform as advertised. The last ten years has seen this reputation sullied as recall after recall has occurred. Given this development, it is not a surprise to hear Akio Toyoda talk about returning the company to “the basics” it was built on.
The billion yen question is whether Akio Toyoda can pull it off? Can you imagine coming into a more difficult situation than the 2009 auto market? He seems ready for the task with his first step being to cut his own salary by 30 percent. While a good PR move, his decisions over the next two years will be far more telling when it comes to the restoration of the reputation of Toyota.
Dirk Gibson writes about
Toyota for DCJAutoParts.com - where you can find
auto parts for your car or truck at tremendous prices.
