Toyota Names New CEO, Hikes Profit Forecasts
Toyota has named a new CEO to accelerate decision-making, the Japanese auto giant said Friday as it hiked its profit and sales forecasts for the current fiscal year despite the impact of U.S. tariffs.
Current finance chief Kenta Kon will take over from chief executive Koji Sato on April 1 after three years in charge, the firm said.
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"This change in roles is intended to accelerate management decision-making in response to changes in the internal and external environment," Toyota said.
The move would also help "establish a structure that will enable Toyota to fully carry out its mission of contributing to society through industry", it added.
The announcement came as the company expects to see net profit of 3.57 trillion yen ($31 billion CAD) for the year ending in March, down 25.1 percent year-on-year but up from the 2.93 trillion yen ($25.5 billion CAD) previously anticipated.
Despite the "negative impact of U.S. tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts," Toyota said in a statement.
Sales are expected to climb 4.1 percent year-on-year to 50 trillion yen ($435 billion CAD), a slight upwards revision.
Operating profit is forecast to hit 3.8 trillion yen ($33 billion CAD), up from the previous projection of 3.4 trillion yen ($29.6 billion CAD).
However, Toyota said the fourth quarter of 2025 saw net and operating profit fall despite a rise in sales, largely because of a "tariff impact" that increased expenses.
Record Sales
Toyota announced last month that global sales hit a new record in 2025, helping it retain its title as the world's top automaker and widen the gap with German rival Volkswagen.
The overall increase came despite flat sales in China, a crucial market where Toyota faces intensifying competition from local automakers including electric-car champion BYD.
U.S. sales climbed eight percent despite the 25-percent tariff on Japanese auto exports imposed by Washington between April and mid-September on top an existing 2.5-percent toll.
The U.S. is a key market where Toyota generates almost a quarter of its sales. But of the 2.52 million vehicles it sold there in 2025, only 1.39 million were produced in the country.
Even so, Toyota increased output last year by 10 percent at its factories in the U.S., where it produces increasingly popular hybrid vehicles.
