Akio Toyoda re-elected as chairman of Toyota despite ongoing issues

Toyoda to serve another year as chairman

Despite all the recent issues with vehicle certification and safety irregularities throughout the Toyota group, the Toyota Motor Company’s shareholders have decided to choose continuity.

Akio Toyoda has been re-elected as chairman of the Japanese auto giant. Toyoda, along with nine other members of the board, will serve another year after the company’s annual general meeting.

According to reports, while Toyoda retained his title as chairman, his approval rating is expected to take another dip due to the issues the company’s groups are currently facing. Those include safety, emissions, and certification irregularities across the Hino, Toyota, Daihatsu, and Toyota Industries that are under the TMC umbrella.

Last year, Toyoda’s rating already dropped from 96% to 85%. Most of those who opposed Toyoda’s leadership were expected to have come from overseas investors, which account for a quarter of Toyota's shareholders.

As we all know, Toyoda came under fire for his stance on electric vehicles early on. But with the current trend of the industry, Toyota’s focus on developing hybrid tech instead of going full EV has resulted in the biggest annual profit for the company and Japanese history.

The popularity of EVs is taking a dip, and some automakers have already opted to change their electrification efforts to continue developing hybrids and plug-in hybrid vehicles. That could be one of the factors why confidence remains high for the majority of investors with Toyoda.

Not to mention, when Toyota faced issues with safety years ago when Toyoda was the CEO, it resulted in a radical transformation of the company where the Toyota Gazoo Racing brand was formed.

Source: Reuters