Toyota Motor Corporation is six months into the tenure of President Kenta Chika (近健太), and under the CFO-background chief executive, it is assessing its businesses with improving “earning power” as the central focus. Development of some next-generation EV models has been cancelled, while consolidated net income for the fiscal year ending March 2027 is forecast to decline.
On 1 October, six months had passed since Toyota Motor Corporation launched its new management structure with Kenta Chika (近健太) as president. Since taking office, under the policies of the CFO-background chief executive, the company has focused on improving its “earning power” while assessing development of some next-generation electric vehicle models. The focus is on how to address an uncertain business environment, including overseas conditions such as tensions in the Middle East and US tariff policy.
At the front line, the company is following the basic course laid down by Chairman Akio Toyoda (豊田章男), while treating improved profitability as a priority against a backdrop of efforts to strengthen its financial structure. The presidency changed from Koji Sato (佐藤恒治) to Kenta Chika (近健太) for the first time in 3 years, with Chika heading management.
From a financial standpoint during the same period, consolidated net income for the fiscal year ending March 2027 is forecast to decline for the third consecutive year, and the break-even point, which marks whether the business is profitable, is reported to be somewhat high. The forecast decline in profit is believed to reflect deteriorating market conditions and the impact of the cost structure.
In May, it was reported that development of a sedan-type next-generation EV had been cancelled, a decision believed to have taken the slowdown in the EV market into account. The presidency changed every 3 years, and Kenta Chika (近健太), as head of the new management structure, is advancing specific reforms.