Toyota Profit Losses May Cost CEO Watanabe His Job

Could this week get any worse for Toyota CEO Katsuaki Watanabe? Yesterday, Watanabe took the unusual step of announcing a huge profits revision at a year-end press conference which is held every December in Nagoya. It was so unusual, in fact, that Toyota now projects it will make its first ever operating loss in the fiscal year ending March 2009. “The speed, breadth and depth of the downturn is beyond what we had imagined,” Watanabe told reporters.

Today, Japan’s Asahi Shimbun is reporting that Toyota will replace Watanabe, 66, with Akio Toyoda, the grandson of Toyota founder Kiichiro Toyoda in April.

According to the Asahi report, the appointment of a family member to the top job would help unify the company at a crucial time. If it was to happen, Toyoda, 52, would be the first family member to lead the company since Tatsuro Toyoda who stepped down in 1995. The newspaper calls the return of a family member “taisei hoken”—a reference to the restoration of imperial rule in Japan in 1868. Toyota denies the story and says nothing has been decided.

 

Agent009 - 12/23/2008 10:36:05 AM

+5 Boost

This seems pretty ruthless considering the whole globe is tanking right now. If the world economy was thriving and they posted losses, then they have a better case.

TehShibbs - 12/23/2008 6:32:26 PM

+1 Boost

I beg to differ. Quality has really been slipping since 2005-2006. I work at a Lexus dealership and have been dealing with many complaints of dash rattles in all of the new cars--ES, RX, and GS specifically. We've never had this many problems in past model years.

Agent009 - 12/23/2008 1:58:18 PM

+1 Boost

Well I just heard sources citing "failing health" which might save some grace for him if true.

BigShow50 - 12/23/2008 2:00:20 PM

+1 Boost

Time to make moves sooner than later, despite the world economy. To have a "Toyota family" member to possibly take over the operations once again is always a grate gain & would be a good time. A time to make some interesting changes for a much better future...and besides in this level of business the Japanese does not take any bullshit...so good luck!!!

kablaam - 12/23/2008 3:01:11 PM

+1 Boost

Captain goes down with the ship.

Toyota's sales declines are on par with pretty much every other car maker on the planet.

No one is immune to the fear that has plagued the world economy. The media is doing a great job.

caznable33 - 12/24/2008 12:26:09 AM

+4 Boost

He should commit seppeku (ritualized suicide)for this embarrassment to the Toyota way.

Just kidding...

weaponX - 12/24/2008 2:39:11 AM

+1 Boost

So, the implication here seems to be that a company’s performance is ultimately the responsibility of the CEO. And the if the big 3 CEOs were held to the same standards they'd most likely be in jail by now. Or, at the very least deported out of the country.