Toyota Will Restructure to Promote Continued Growth
At more than 10 million vehicles sold annually, Toyota is the world’s largest automaker—and also the most admired. And with Volkswagen’s downward spiral due to the not-so-cleverly titled “Dieselgate” scandal (I mean, couldn’t we as the media have collectively come up with something better, like the “Das Bad Auto” scandal or the “It Makes Sense, Because Hitler” scandal? But I digress), it looks like Toyota is in a prime position to retain that title for a time to come. But how can the automaker not just maintain its current standing, but also continue to push and grow?
Restructuring, that’s how.
Toyota Motor Corporation today announced substantial changes to its current structure. The automaker believes that this restructuring will help to “link work processes,” “enable individual business units to make decisions more quickly and independently,” and “strengthen the functions responsible for formulating mid-to-long term objectives and corporate strategies.” That’s a lot of corporate mumbo jumbo to basically say, “We’re gonna make even better cars and hopefully sell a helluva lot more. Now let’s all have some saké to celebrate.”
For starters, Toyota will create what it’s calling “Business Units,” including Innovative R&D and Engineering Company, Toyota Compact Car Company, Mid-size Vehicle Company, CV Company, Lexus International Co., Power Train Company, and Connected Company. (Notice the absence of Scion. Oh, how fast you can move on, Toyota. Better watch your back, Lexus.)
Toyota is also establishing the Frontier Research Center, with the goal of developing new tech and more business models. Heading up this research center will be Executive VP Mitsuhisa Kato. Toyota also announced a number of other leadership changes, including the promotion of Didier Leroy to chief competitive officer.
For a complete look at the executive shuffle, take a look at this list full of names you can’t actually pronounce. (It’ll be like trying to read the credits at the end of Mario Kart, which never goes well.)
All restructuring updates go into effect on the 18th of next month.
Timothy Moore takes his leadership inspiration from Michael Scott, his writing inspiration from Mark Twain, and his dancing inspiration from every drunk white guy at a wedding. When Tim is not writing about cars and money, he’s working on his novel or reading someone else’s, geeking out over strategy board games, hiking with his pooch, or channeling his inner Linda Belcher over beers with his friends. See more articles by Timothy.