Toyota's Akio Toyoda steps down as industry leader, replaced by Isuzu's chairman

TOKYO — Akio Toyoda is retiring as chairman of the Japan Automobile Manufacturers Association after an unprecedented three terms leading one of the world's biggest, most vibrant automotive industries through a turbulent decade of dramatic and rapid change.

Toyoda, who early this year also stepped down as CEO of Toyota Motor Corp., will be succeeded at the helm of JAMA by Masanori Katayama, chairman of Isuzu Motors.

Katayama's appointment is the first time JAMA's top job will be filled by the boss of a truck maker since the industry group's founding in 1967. The chairmanship of JAMA usually rotates every two years between Japan's three biggest carmakers — Toyota, Honda and Nissan.

Toyoda, 67, was first appointed chairman of JAMA in 2012, three years after he took over as president of the company his grandfather Kiichiro founded nearly 90 years ago.

He took the wheel of the group again in 2018 and assumed an unprecedented third two-year term from May 2022. He will hand the wheel to Katayama on Jan. 1, ending his term with the new year.

During his tenure at the top, Toyoda blossomed into a charismatic, high-profile champion of Japan's automotive industry and, more generally, international enthusiasm for cars and driving.

As head of the world's largest carmaker and Japan's vast auto sector, Toyoda had a perfect platform to promote the interests of automakers and suppliers around the world.

"The automotive industry is a global industry, and all companies have gone global," Toyoda said at a Wednesday news conference to announce JAMA's leadership change.

"The role of the Japanese auto industry in the world has changed day by day," he said. "But the automotive industry will have to continue to be an essential industry for this country."

And as one of the industry's longest-serving top executives, Toyoda brought long-term perspective and a steady hand as a kind of elder statesman in dealing with an often-topsy-turvy sector. Toyoda sometimes served as a counterpoint voice to new developments, such as the sudden ardor for autonomous driving technologies or the industry's rapid plunge into electric vehicles.

Toyoda always pitched a balanced, multi-pronged approach to such trends.

At home, Toyoda promised to protect Japan's automotive industry and its reputation as a world leader, even as critics wondered whether the country had lost its edge and fallen behind on EVs.

As JAMA chairman, however, Toyoda was always cognizant of his role in collectively representing 5.5 million employees from 14 of the country's automobile manufacturers. Toyoda presented it as a challenge of guiding the industry through a "once-in-a-century change" as car manufacturers around the world aim to electrify their vehicles to counteract climate change.

Toyoda said he was able to help change the global dialogue about the transition to EVs and temper the urge among come global regulators to mandate a wholesale shift to EVs. Instead, there is greater appreciation for a diversified approach to achieving carbon neutrality.

"The general attitude in society, it has changed," he said.

"Unfortunately, some people said we are lagging behind by a full lap," Toyoda said of those criticizing the slower rollout of full EVs by Japanese automakers. "But what pushed me forward was the 5.5 million people who work on the front lines. It takes time to change things."

Among Toyoda's challenges was reviving the flagging Tokyo Motor Show amid waning global interest in auto expositions. JAMA rebranded the event as the Japan Mobility Show for this year's conclave to cast a wider net for high tech and start up industries, drawing 1.11 million people.

The scion to Toyota Motor's founding family took the helm of Toyota Motor in 2009 and stepped down as CEO to become chairman this year. He served longer behind the wheel than nearly every other concurrently serving CEO at another global automaker.

Ongoing priorities for JAMA are tackling the industry's shift to carbon neutrality and achieving the Japanese government's goal of reaching net zero emissions by 2050.

As part of a recent JAMA overhaul, the group adopted vice chairmen from the the bus-and-truck sector and from the motorcycle sector to better coordinate carbon-neutral activities.

One reason for tapping Isuzu's chairman was to inject more input from Japan's trucking segment at a time when the country is facing serious logistical problems.

The first is an increasingly chronic labor shortage amid an aging population. The other is a labor law taking effect next year that restricts the work hours of such drivers.

"The automotive industry will continue to be the most important pillar of the Japanese economy," Katayama said. "But there still remain many challenges."

Nissan CEO Makoto Uchida and Honda's Toshihiro Mibe also serve as vice chairmen on JAMA's new leadership team. So does Koji Sato, who took over as CEO of Toyota Motor this year.

Editor's note: This story was corrected to indicate Toyoda served three terms as chairman of JAMA. The description of his tenure was misstated in a previous version of this story.