TMC announces executive and organizational changes

Toyota Motor Corporation (TMC) announces that it will modify its management structures and implement executive, organizational and personnel changes in conjunction with the structural modifications effective April 1, as part of realization of the Toyota Global Vision.

The changes are intended to create structures that can meet the following objectives: 1) convey customer opinions and on-site information to management in a timely manner, 2) make prompt management decisions based on on-site information and 3) make constant checks as to whether management decisions are acceptable to society.

I. Changes to Management Structures 

1. Streamlining of board of directors The number of directors will be reduced from 27 to 11.

The board of directors will comprise the chairman, president, five executive vice presidents, and the four officers responsible for the Business Development Group, Accounting Group and External Affairs Group (a formal decision will be made at the board of directors meeting held after the 107th General Shareholders Meeting).

2. Scaling down of executive decision-making system

- The current three-tier executive system with executive vice presidents, chief officers, and officers responsible for group affairs will be streamlined to two tiers by eliminating the officers responsible for group affairs.

- Chief officers will be appointed in a flexible manner from the new positions of senior managing officers or managing officers.

The senior managing director position will be eliminated (a formal decision will be made at the board of directors meeting held after the 107th General Shareholders Meeting). There will also be a substantial reduction in the total number of executives from 77 to 60.

3. Changes to structures to allow local decision making by overseas affiliates 

Regional chief officers will in principle be stationed in their respective regions and the number of executives stationed outside Japan will be increased from 13 to 15.

Their divisions' functions, which are presently performed in Japan, will be transferred overseas in stages.

4. Changes to structures to ensure that outside opinions are listened to in earnest and reflected in management practices

- Regional advisory committees will be established in North America, Europe and Asia.

- Prof. Yoko Wake (of Keio University) will be appointed as outside corporate auditor (a formal decision will be made pending approval by the 107th General Shareholders Meeting).

5. Position of executive general manager will be created as non-executive position

- Executive general managers will be responsible for areas that require close contact with work sites and the implementation of management.

- Executive general managers will fill such posts as grand chief engineers responsible for vehicle development, general managers responsible for technology and plant general managers.