Akio opens up to shareholders, discussing personal insights

In the face of significant challenges, Toyota Motor Corporation has demonstrated resilience and adaptability, as evidenced by the events of its 116th Ordinary General Shareholders' Meeting held on June 11, 2020.

Seven years ago, Toyota found itself in a deficit of 461 billion yen following the global financial crisis. Since then, the company has embarked on a mission to strengthen its corporate composition, achieving cost reductions that have allowed it to absorb increases from TNGA (Toyota New Global Architecture) and CASE (Connected, Autonomous, Shared, and Electric) investments.

The efforts to strengthen Toyota's corporate foundation have been ongoing since Akio Toyoda took the helm as president in 2009. During this period, the company has faced numerous crises but has gradually emerged stronger. One of the key strategies has been an "intentional pause" for three years, during which Toyota aimed to strengthen its true competitiveness. However, Akio Toyoda admitted that he did not feel he obtained sufficient results from this period.

Despite these challenges, Toyota's financial results for March 2020 showed a remarkable resilience. The company managed to maintain an operating income of over 2.4 trillion yen, limiting the drop in operating profits to just one percent year-on-year despite some impact from COVID-19. This is a significant improvement compared to the global financial crisis periods, during which Toyota lowered its break-even point by more than two million units.

The shareholders' meeting, held within three months of Toyota's business year end (June 30), began with a business report video, followed by opening comments from President Akio Toyoda. The meeting included a Q&A session, closing comments, and voting.

Akio Toyoda views the shareholder meeting as an opportunity to communicate directly with shareholders. During this meeting, he revealed his innermost thoughts, things he dared not say to the media. He spoke about the company's efforts in strengthening its corporate composition and its ongoing transformation, which he described as a once-in-a-century period of profound transformation. Toyota is actively engaged in both "bringing back what makes Toyota" and "completely redesigning Toyota for the future."

In addition to the measures taken to prevent the spread of COVID-19 at the meeting, such as placing transparent screens between shareholders and executives, Toyota has been actively promoting an environment for building partnerships for the future. The company respects each other and cooperates through work with like-minded partners.

Toyota has revised its executive and organizational structure, including the introduction of an in-house company system, the establishment of the "Seven Samurai" structure, and the discontinuance of the post of executive vice president. The company has made genuine efforts to achieve true mutual understanding with employees during labor consultations.

As Toyota continues to navigate through these challenging times, it is clear that the company remains committed to its mission of strengthening its corporate composition and ensuring a sustainable future.