Breakingviews - Breakingviews: Toyota without Toyoda takes a small step forward

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Akio Toyoda, grandson of the founder of the world’s largest automaker, is handing over his title as Toyota president, which effectively means chief executive, to Koji Sato. The new boss is currently chief branding officer and president of the Lexus luxury unit. During Toyoda’s tenure, which began in 2009, Toyota shareholders have enjoyed annualised total returns of over 10%, per Eikon data, outperforming the benchmark index and beating the doors off rivals like Nissan Motor and General Motors - and within a hair’s breadth of Volkswagen .

Toyota for not transitioning to pure electric vehicles quickly enough. Lexus aims to have battery-powered options for all models by 2030, and go completely electric by 2035.

Toyoda will stay on as chairman, which muddles governance, although it can’t last forever. Regardless, his decision to identify a young successor earlier than anticipated is something to applaud, as is Toyoda’s success at the helm. Capital Calls - More concise insights on global finance:

 

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