Chairman of Toyota Steps Down

Chairman of Toyota Steps Down

TOKYO, Saturday, June 24 — The chairman of Toyota, Hiroshi Okuda, stepped down Friday after a career in which he helped transform Toyota from Japan's biggest automaker into a global powerhouse.

Mr. Okuda's departure, announced at the company's general shareholders meeting, was not unexpected.

He will be succeeded as chairman by Fujio Cho, 69, the automaker's vice chairman, who has worked closely with Mr. Okuda through the years. Mr. Okuda will remain on the board of Toyota Motor as a senior adviser, a largely ceremonial post.

For more than a decade, Mr. Okuda, 73, was corporate Japan's most prominent spokesman, both in his role at Toyota, where he was president before becoming chairman, and as chairman of the Keidanren, Japan's biggest business organization. He retired from that post last month.

Tall, broad-shouldered with a shock of jet-black hair and a devilish smile, Mr. Okuda, who holds a black belt in judo, was a sharp departure from the stereotype of the cautious Japanese business leader.

He joined Toyota in 1955 and became its president — the equivalent of chief executive — in 1995. He subsequently rose to chairman in 1999, succeeded as president by Mr. Cho.

Instead of fading into the background, as often happens in the chairman's job, Mr. Okuda remained a presence, teaming with Mr. Cho in an effort to rid Toyota of "big-company disease."

With a zeal for auto racing and a global perspective, Mr. Okuda pushed Toyota, previously known for its conservative approach, into new types of vehicles and new markets. Under the tactic, which some called the Americanization of Toyota, the company expanded its operations in the United States, which passed Japan a few years ago to become Toyota's biggest world market.

During his tenure, Toyota opened its first truck plant in the United States, expanded engine operations and its factories in Canada, and announced plans for a second truck plant, which will open later this year in San Antonio. Toyota is now considering sites for another American assembly plant as well as another engine plant, part of a $14.1 billion expansion plan around the world.

The company has already passed Ford Motor to become the world's second-largest automaker, and many analysts say that Toyota could soon pass General Motors to become the world's biggest, perhaps as soon as this year.

Even if that does not happen, Toyota is the world's richest company, putting together a string of record profits under Mr. Okuda, Mr. Cho and the current president, Katsuaki Watanabe, 64. In 2005, Toyota earned $12.1 billion. By contrast, G.M. lost more than $10 billion in 2005.

Along with record profits, Mr. Okuda led Toyota into one of its most successful ventures, hybrid-electric vehicles, which run on both a gasoline engine and an electric motor.

In 1997, Toyota brought out the first version of its Prius sedan, which has since become one of the most recognized vehicles in the industry. Since then, Toyota has sold more than 300,000 Prius cars, and has added hybrid sport utility vehicles, luxury cars and family sedans.

"I do not view efforts to address issues in the energy and environmental fields as a burden to industry or society," Mr. Okuda said in a 2004 speech. "To the contrary, I believe they should be recognized as opportunities for growth."

Seeing the success its rival Honda had in the racing field, Mr. Okuda pushed Toyota to step up its racing activities, prompting the company to enter the elite Formula 1 circuit as well as Nascar and Indy car racing.

Aside from his business activities, Mr. Okuda has been a fashion leader. Last year, he became the symbol of a new summer look, Biz Cool, the Japanese equivalent of business casual.

For Mr. Okuda, who took part in a runway show meant to demonstrate the look, that meant simply removing his tie and unbuttoning his collar. But it spelled relief for executives who previously sweltered through hot, sticky Japanese summers in formal business attire.

See full article in NY Times:

Article