close
close
numb-two

Toyota’s CEO under pressure due to scandals

Heory
Toyota’s CEO under pressure due to scandals

Shareholder support for Toyota Motor Corporation CEO Akio Toyoda has waned significantly since a series of highly publicized vehicle safety certification scandals came to light last year, prompting long-term production suspensions of a number of key models this year.

Toyota reported a 4% decline in global group sales to 6,976,035 units in the first eight months of 2024, with sales in Japan falling 18% to 932,154 units. The popular Corolla Fielder, Corolla Axio and Yaris Cross are the latest models to be suspended between June and September. Earlier this year, production of several models at Daihatsu’s small car subsidiary was also suspended for more than three months.

Local reports this week suggested that large institutional investors, including Nissay Asset Management Corporation, Mitsubishi UFJ Asset Management Company, Sumitomo Mitsui DS Asset Management Company and Fukoku Capital Management Inc, opposed the reappointment of Akio Toyoda as the company’s chairman at this year’s shareholder meeting in June. Akio Toyoda is the grandson of the automaker’s founder, Kiichiro Toyoda.

Other institutional shareholders, including Nippon Life Insurance Company, supported the current management after receiving assurances from the CEO that the company had identified the root causes of the scandals and taken effective measures to prevent future misconduct.

However, the CEO’s overall shareholder approval dropped to a low of 72% in June from 85% a year earlier and from a normal level of over 90%.

Access the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – free sample

You will receive a download email shortly

We are sure of the exceptional quality of our company profiles. However, we want you to make the most beneficial decision for your business, which is why we offer a free sample, which you can download by submitting the form below

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can unsubscribe from future subscriptions marketing messages. Our services are intended for corporate subscribers and you warrant that the email address you submit is your corporate email address.

Last week, Toyota announced it was increasing its share buyback volume this year from 1.0 trillion yen to 1.2 trillion yen ($8.31 billion).