Outgoing Chair Akio's Farewell "Thank You" Message
In Toyota City, Aichi, on June 14, 2024, the General Shareholders' Meeting marked a significant milestone in the 14-year tenure of Akio Toyoda as Chairman. The meeting, once his least favourite day of the year, had become a chance for self-reflection for Toyoda.
During his tenure, Toyoda focused on protecting Toyota's core principles and legacy while actively pushing for transformation and innovation. He viewed himself as Toyota's "rearguard," emphasizing the protection of the company's foundational strengths even as it faced rapid changes in the industry.
Specifically, Toyoda sought to protect the distinctiveness and quality that Toyota is known for, especially in manufacturing and employee ownership mentality. He encouraged workers and management to maintain a healthy sense of urgency and a "sense of ownership" to keep Toyota agile and innovative. This reflects his effort to preserve Toyota's unique corporate culture despite market shifts.
Simultaneously, Toyota, under Toyoda's leadership, transformed from a traditional automotive company to a broader mobility company. Toyota expanded beyond cars to cover more areas like marine and potentially aviation markets, as seen with the Lexus brand developing luxury yachts and exploring executive jets. This push reflects a strategic change towards new mobility domains and integrating advanced technologies outside conventional vehicle manufacturing.
Under Toyoda's leadership, Toyota also underwent corporate restructuring to simplify group alignments and strengthen essential supply chain operations. This included the significant acquisition and restructuring involving Toyota Industries Corporation to enhance focus on smart logistics and autonomous systems.
Toyoda's initial pledge was to become "the most genba-oriented president," spending more time on the frontlines than in the president's office, leading from the front and embodying Toyota's unique values. His decisions, often going against the currents of time and Toyota's conservative mainstream, steered the company through various crises.
Akio Toyoda's voice trembled as he expressed his gratitude during the shareholders' meeting. He thanked the silent shareholders who continued to offer encouragement through the general meetings. Three resolutions were approved, including the election of 10 board members, Chairman Toyoda and President Koji Sato among them.
The proceedings included 11 questions from the audience covering various topics, including the 14 years under President Toyoda, the aspects to be inherited and changed under the new team, and Toyota's electrification strategy. President Koji Sato called for Toyota employees and partners to change the future of cars.
A growing number of people were inspired by Akio's example and drawn to his vision, contributing to Toyota's solid business footing. Toyoda expressed gratitude towards those he had served, stating that his role was the rearguard, protecting Toyota's corporate culture and future. The chairman was greeted with tremendous applause, marking a moment of mutual appreciation between Akio Toyoda and those he had served.
In his tearful final message at the meeting, Toyoda mentioned that he initially was the president no one wanted but was necessary in Toyota's history. He believed that Toyota's 370,000 global members have shown him that "you can change yourself, and the future." The battle to change the future for carmakers has already begun, and Toyoda hopes the new team will show its true colours at the shareholders' meeting.
The first shareholder proposal in 18 years, seeking a climate-related amendment to the company's Articles of Incorporation, was rejected. Despite this, Toyota's commitment to innovation and sustainability remains evident in its strategic shifts under Toyoda's leadership. Akio Toyoda's tenure was marked by a balance of safeguarding Toyota’s heritage and operational excellence, while leading necessary organizational and technological innovations to secure Toyota’s future in a transforming mobility landscape.
In his tenure as Chairman, Akio Toyoda demonstrated a blend of leadership and finance by focusing on preserving Toyota's core principles while pushing for innovation, simultaneously leading the company's transformation from a traditional automotive to a broader mobility company. As Toyoda prepared to step down, he expressed gratitude for the company's employees, acknowledging their contributions to Toyota's business success and its commitment to sustainability.
