By Kosaku Narioka

Toyota Motor's chief executive is stepping down after a relatively short term in office that was buffeted by President Trump's tariffs and struggles to maintain market share in China.

Toyota, the world's largest carmaker, said Koji Sato, 56 years old, would take a new role as vice chairman and focus on his work at industry groups. Chief Financial Officer Kenta Kon, 57, will be promoted to CEO, effective April 1.

Both men are longtime lieutenants of Toyota Chairman Akio Toyoda, grandson of the automaker's founder and the power behind the throne at the company. Toyoda, 69, held the CEO post himself from 2009 to 2023 before handing the role to Sato.

Toyoda, a longtime skeptic about whether electric vehicles would take over the global car market, was largely proved right in the U.S., and the carmaker's lineup of hybrid gas-electric vehicles has helped it succeed among American car buyers.

Toyota said in November that it was investing more than $900 million to increase hybrid-car production in the U.S. to meet growing demand. The investment is part of Toyota's plan to invest up to $10 billion in the country over the next five years.

While addressing U.S. military personnel in Japan in October, Trump said the Japanese prime minister told him about Toyota's big investment in U.S. auto plants. "Go out and buy a Toyota," Trump told the troops.

Soon after, Automotive News published a photo of Toyoda wearing a "Make America Great Again" hat at an auto-racing event.

Toyota remained the world's biggest carmaker in 2025. Group sales rose 4.6% to a record 11.3 million vehicles, led by the U.S. where it sold 2.5 million vehicles.

Still, the carmaker has been hit by the Trump administration's tariffs. Japanese autos are subject to a 15% tariff following a trade deal struck with Tokyo in July.

The company pointed to profitability issues in announcing the elevation of Kon, whose career has focused on finance at Toyota. It said Kon's priority would be "improving the company's earning power" and "concrete actions on these issues are urgently required."

Like other foreign automakers, Toyota has struggled in China in recent years, ceding ground to Chinese carmakers.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 06, 2026 01:29 ET (06:29 GMT)

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