Restructuring Toyota’s EV strategy is the top priority for the next CEO

With a new leadership team recently introduced, Toyota’s incoming CEO, Koji Sato, has pledged to “drastically” rework the automaker’s sluggish EV strategy in order to rebuild the largest automaker in the world as a mobility company in a challenging new era of industry change.

Sato stated that the rapid EV rollout would be focused on a next-generation platform, which is anticipated to appear around 2026, when unveiling the new roster on Feb. 13.

The ramp-up comes amid growing criticism that Toyota is lagging behind in the battle for battery-powered vehicles among certain investors, environmentalists, and EV fans. To lead the push, which will begin with Lexus, Sato appointed a new senior executive.

With its new management structure, the 85-year-old carmaker retains some senior executives while elevating younger ones. When Sato, 53, succeeds Akio Toyoda, 66, as CEO on April 1, he said he will focus on a three-pronged plan.

1. Accelerate the automaker’s EV approach.
2. Bolster the business’s software-first activities connected to Woven.
3. Ensure that Asia becomes carbon neutral.

In addition to pursuing EVs, Sato promised that Toyota would continue to develop its recognizable hybrid, plug-in hybrid, and hydrogen-powered vehicles. The approach for a varied range of powertrains was pioneered by his predecessor.

Sato declared, “I don’t think a one-size-fits-all answer works.” However, Sato also indicated a new sense of urgency in the boardroom by promising significant reform.

Reevaluating the company’s battery electric product plan is a major priority, according to the new CEO, who also oversees the premium Lexus brand and the Gazoo Racing motorsports division.

According to Sato, business reform, starting with next-generation BEVs, is first. “We must streamline the car’s structure and adopt a BEV-first approach in order to deliver attractive BEVs to more customers.”

Sato said more information would probably be released in April after he takes office.

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