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Founder's grandson may take over struggling Toyota
(Agencies)
Updated: 2008-12-25 15:49 "There was no question really about his (Toyoda's) presidency. The only question was when," said Mamoru Katou, auto analyst with Tokai Tokyo Research. While Toyota generated rising profits, it seemed likely that Toyoda would move into the top post around 2010, Katou said. That may have changed now, but Watanabe, a procurement and cost-cutting expert, is probably not being replaced immediately, he added. Before the US financial crisis erupted this year, Watanabe had overseen Toyota's stupendous expansion, riding on the success of its fuel-efficient models. Toyota's global vehicle sales have grown for nine years straight -- a string that will almost certainly end this year. Watanabe has now promised to halt expansion plans, cut thousands of jobs in Japan, slash costs and postpone the start of a Mississippi plant, while focusing on green technology and developing small cars and hybrids to prepare for the next growth opportunity. "Things are so horrible I don't see what a personnel change would achieve," said Tsuyoshi Mochimaru, auto analyst with Barclays Capital in Tokyo. "It would make more sense to have a new president after things calm down." In recent years, Akio Toyoda has often been asked about heading the company. He smiles but says the thought has never entered his mind. Appearing power-hungry would be unbecoming in Japanese culture, which values humility and understatement. The last three presidents at the company have not been a Toyoda family member. In recent years, there has been some speculation about another succession scenario: An older executive would serve as president for a few years after Watanabe -- before Toyoda takes over. That's partly because it's rare for major Japanese companies to be headed up by presidents in their 50s.
At this week's news conference, Akio Toyoda tried to sound upbeat by comparing the company's woes to a baseball game that could still be won. "I am hopeful we've reached the bottom of the seventh inning," he said. "The sales declines we are seeing are clearly abnormal."
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