Toyota Appoints Koji Sato as President as 25% EV Tariffs Slice $1.2B Profit
Toyota will appoint Koji Sato as president effective April 1 and elevate Akio Toyoda to chairman, marking a major leadership shift. The change comes as a 25% U.S. tariff on imported electric vehicles has reduced Toyota’s operating profit by about $1.2 billion year-to-date.
1. Leadership Overhaul
Effective April 1, Toyota will appoint Koji Sato as president and CEO, transferring current president Akio Toyoda to the chairman role. This marks the most significant leadership restructure in a decade aimed at accelerating the company’s shift toward electrified vehicles.
2. Tariff-Induced Earnings Hit
A newly implemented 25% U.S. tariff on imported electric vehicles has cut Toyota’s operating profit by approximately $1.2 billion year-to-date. The levies have increased per-unit EV costs by roughly $1,500, narrowing margins across key North American markets.
3. Strategic Outlook
Under the new regime, Toyota plans to fast-track its EV portfolio, targeting 30% of global sales from electrified vehicles by 2030. Management will seek tariff relief and optimize its battery supply chain to mitigate further cost headwinds.