As heralded earlier, Toyota president Akio Toyoda has announced a major restructure of the company and management team that sees the old-order chairman take an 'honorary' role, gives lower level executives more local authority and autonomy and divides the company into four divisions.

"The new structure is based on a review of the organisation’s way of working and making decisions, and is aimed at achieving real competitiveness and realising sustainable growth," TMC said in a statement.

Executive changes include a board reshuffle and the appointment of TMC’s first outside board members.

From 1 April the four new units are:

  • Lexus International (Lexus business)
  • Toyota No. 1 (North America, Europe and Japan)
  • Toyota No. 2 (China, Asia & Middle East, East Asia & Oceania; Africa,
  • Latin America & Caribbean)
  • Unit Center (engine, transmission and other 'unit'-related operations)

Lexus International remains the brand's global headquarters, aiming for the establishment of Lexus as a global premium brand with Japanese roots.

Toyota No. 1 and Toyota No. 2 will have executive vice presidents in charge and will oversee all aspects of Toyota-brand vehicle development, from planning to production to sales.

Unit Center will develop globally competitive 'unit' components including major powertrain components such as engines and transmissions. The executive vice president in charge will oversee all operations from component planning and development to production technology and functions aimed at bringing products to market fast.

Regional groups have also been reshuffled. To improve products and services for and in growing markets, the Asia and Oceania Operations Group and the Middle East, Africa and Latin American Operations Group will be reorganised into the East Asia & Oceania Region, the Asia and Middle East Region, the Africa Region, and the Latin America & Caribbean Region. These new region groups, in addition to the existing China Region, North America Region, Europe Region, and Japan Sales Business Group, will total eight, an increase from the previous six.

In addition, as part of ongoing efforts to increase region head 'globalisation', as is the case currently in Toyota’s Europe operations, a non-Japanese executive - to be titled CEO - will be in charge of the North America, Africa and Latin America & Caribbean regions.

There are also new divisions not belonging to a group: TNGA Planning Division the Product & Business Planning Division will be reorganised. Both divisions will not belong to a group. The TNGA Planning Division will be in charge of technology-based medium-to-long term product (vehicle and unit components) strategy and the Product & Business Planning Division will be in charge of market-based medium to long term product strategy.

The executive reshuffle list covers eight pages and starts with the promotion of vice chairman Takeshi Uchiyamada to chairman and the departure of Fujio Cho to 'honorary chairman'. Announcing the changes in Tokyo, Toyoda paid tribute to the long-serving Cho, who once headed Toyota's Kentucky 'transplant' and said he would "continue to be a pillar of emotional fortitude that supports the management of Toyota".

The three new outside board members are Ikuo Uno, executive advisor, Nippon Life Insurance Company; Haruhiko Kato, president, Japan Securities Depository Center; and Mark Hogan, described as an independent consulant and Independent consultant former General Motors group vice president.

Western names nonetheless remain a tiny minority though notable are two already well known: Jim Lentz, whose current roles include president and CEO of Toyota Motor Sales, USA, becomes a senior managing officer and CEO of the North American region and continues as head of Toyota North America while Toyota Motor Europe head Didier Leroy, already a senior managing officer, will now also be CEO of the new Europe region (he was already head of the European operations group).

Steve St Angelo, currently a managing officer at Toyota North America and head of engineering and manufacturing there, moves to CEO of the Latin America and Caribbean group and head of Toyota Brazil.

Mark Templin, currenetly head of the TMS Lexus Division, and general manager, Lexus Product Marketing Planning Division at TMC, will become a managing officer and executive vice president of Lexus International, where he will head global operations from Japan. He becomes the first non-Japanese executive to oversee a Toyota division within the company's global headquarters in Toyota City.

It takes another two pages just to detail the changes in North and South America alone - these can be seen as issued by clicking on the 'press release' button below.

"The larger Toyota becomes, the more difficult it becomes to maintain a sentiment in which each employee feels that he or she plays a direct role in supporting Toyota.

"The objective of the organizational changes being announced today, as we enter a new phase of growth in vehicles sales, is to build an organisation in which its members can take ownership of their work," Cho told reporters in Tokyo.

Show the press release

Toyota Announces Executive Changes Across North and South America

NEW YORK, March 6, 2013 /PRNewswire/ -- Toyota Motor North America, Inc. (TMA) today announced executive changes across Toyota's North and South American affiliate companies, which are effective as of April 1.

These executive appointments are intended to give greater autonomy and more local control to regional executives and managers so they can provide superior customer-focused products and services.  The moves also advance Toyota's efforts to integrate top regional talent into its global leadership team in order to best meet the needs of customers around the world.

Akio Toyoda, President of Toyota Motor Corporation (TMC), said of the announcement: "These changes will help us to achieve sustainable growth and realize our Global Vision by giving more responsibility to each region, including our North and South American operations, so that they may develop and deliver ever better products and offer the best service to our customers."

The changes announced today include:

James (Jim) Lentz, currently president and CEO of Toyota Motor Sales, U.S.A., Inc. (TMS), senior vice president of Toyota Motor North America (TMA) and managing officer of Toyota Motor Corporation (TMC), is named senior managing officer of TMC, chief executive officer North America Region, and president and chief operating officer of TMA.  In this new role, Mr. Lentz will oversee all of Toyota's North America affiliates, including TMS, TMA and Toyota Motor Engineering & Manufacturing, North America, Inc. (TEMA), which includes responsibilities for Toyota Motor Manufacturing Canada Inc. (TMMC), and will have new oversight for Toyota Canada, Incorporated (TCI).  Mr. Lentz will also become chairman of the North American Executive Committee, which will consist of cross-affiliate leaders. He will report to Satoshi Ozawa and Mitsuhisa Kato, executive vice presidents and members of the Board, TMC.

Kazuo Ohara, managing officer, TMC and executive vice president, Lexus International, will become chief executive officer and president of TMS, with responsibility for Toyota's North America sales, service and marketing operations, reporting to Mr. Lentz.

Osamu ("Simon") Nagata, deputy chief officer, External Affairs group, and managing officer, TMC, is named chief executive officer and president of TEMA, where he will lead Toyota's North American manufacturing and engineering operations, also reporting to Mr. Lentz.

Steve St. Angelo, having served Toyota North America as executive vice president, TEMA, and senior vice president of TMA, is named chief executive officer, Latin America and Caribbean Region.  He remains a managing officer of TMC.  Based in Sao Paulo, Brazil, Mr. St. Angelo will be chairman of Toyota do Brazil and will oversee all of Toyota's Latin America and Caribbean affiliates. He will report to Mitsuhisa Kato and Yasumori Ihara, executive vice presidents and members of the board, TMC.

Mark S. Templin, group vice president and general manager - Lexus Division, TMS, and general manager, Lexus Product Marketing Planning Division, TMC, is named managing officer and executive vice president of Lexus International, where he will lead Lexus global operations from Toyota City, Japan.  With this appointment, Mr. Templin becomes the first non-Japanese executive to oversee a Toyota division within the company's global headquarters in Japan.  In this new role, he will report to Kiyotaka Ise, senior managing officer and president of Lexus International.

Real ("Ray") Tanguay, chairman, Toyota Motor Manufacturing Canada Inc. (TMMC), North American chief quality officer and senior managing officer of TMC, will be named advisor, TMC and chairman, TCI.  He remains chairman of TMMC and president of Canadian Autoparts Toyota, Inc. (CAPTIN), which are overseen by TEMA.  Given Mr. Tanguay's enhanced focus on growing the Canadian market and overall coordination of Canadian operations, the role of chief quality officer will be re-assigned at a later date.

Robert (Bob) S. Carter, senior vice president - automotive operations, TMS, will have added responsibility for the Lexus Division, aligning sales, service, marketing, customer initiatives, vehicle distribution and parts operations for Toyota, Lexus and Scion under one executive.  He will report to Mr. Ohara.

Jeffrey (Jeff) Bracken, vice president, sales, Toyota Division, is named group vice president and general manager - Lexus Division, TMS, reporting to Mr. Carter.  Mr. Bracken will be responsible for all sales, marketing, customer service and dealer operations for Lexus in the U.S.

Yoshimi (Yoshi) Inaba, chairman of TMS, is named executive chairman of TMS.  He remains executive advisor to TMC.

Mark Hogan, president of Dewey Investments LLC, is appointed as one of three new outside board members of TMC.  Mr. Hogan is the first American to be named as an outside board member of the company.

Shigeki Terashi, managing officer, TMC, president and COO, TMA and president and CEO, TEMA, is named senior managing officer, TMC, where he will be chief officer, Corporate Planning Division and chief officer, Product and Business Planning Division.

Kazuhiro Miyauchi, managing officer, TMC, senior vice president, TMA, and executive vice president - Purchasing and Supplier Engineering Development, TEMA, will become chief officer, Production Control Group, TMC.

Hiroyuki Fukui, senior vice president and chief coordinating officer, TMS, is named managing officer, TMC, and named chairman of Toyota Motor Manufacturing Indonesia (TMMIN).

Commenting on the announcement, Jim Lentz said: "Integrating Toyota's North America affiliates under a more unified and streamlined management structure will significantly enhance local responsibility over operations, clarify decision-making and strengthen our 'customer-first' focus.  Backed by decades of industry experience, this leadership team represents a deep bench of talent that is well prepared to capitalize fully on the strong momentum across our North and South America operations as we enter a new phase of growth."

Mr. Lentz continued, "We have drawn from a strong and seasoned cadre of global business leaders with these appointments.  This new leadership team leverages a unique combination of strategic vision, break-through innovation, executional discipline and an unwavering focus on the customer."

Commenting on his new role as chief executive officer, Latin America and Caribbean Region, Steve St. Angelo said, "This is an exciting opportunity to build on Toyota's continued success in an important emerging market. As we work to serve our customers in the region, I look forward to contributing my manufacturing and business experience to all of the significant accomplishments our colleagues across Latin America have achieved over the past few years."

Original source: PRN