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Toyota Mulls New Structure to Groom Future Leaders, Report Says

18 Janvier 2016 - Automotive News

Toyota Mulls New Structure to Groom Future Leaders, Report Says

Toyota Motor Corp. is considering a management structure that groups businesses according to the product type in a shift away from a focus on geography, the Nikkei business newspaper reported. The change will also help to nurture the next generation of company leaders, the paper said.

Toyota will have "in-house companies" for passenger vehicles, compact cars, commercial vehicles and Lexus, the Nikkei reported, without saying where it got the information.

The automaker currently divides up the company into two geographical groups, with Lexus and engines forming the other two groupings. The report didn't say whether the geographical grouping will be replaced under the new system.

The Nikkei said Toyota will give these companies as much autonomy as possible, including human resources, external affairs. Presidents of each company will have more authority and Toyota is also aiming to nurture next-generation leaders by making this change.

Under President Akio Toyoda, Japan's largest automaker has rolled out what it calls Toyota New Global Architecture, featuring common underpinnings and components for multiple models. The goal is to cut costs to free up resources to develop cars that are lighter, more fuel-efficient and packed with new technology.

Toyota has said it will shift half of all the vehicles it makes to the new cost-saving platforms by 2020.

Kayo Doi, a Toyota spokeswoman in Tokyo, said the company isn't the source of the report.

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