Akio Toyoda to continue the Toyota Way

I'm a big of a fan of Toyota.  Not so much their cars as I don't drive, and Toyota don't make bikes, but more of the way they operate.  I've read numerous books and articles on the Toyota production system and lean in general.  This culture is central to the incredible performance by Toyota in the past decade that has seen them leapfrog GM to become the worlds biggest car maker and largely avoid many of the troubles that have engulfed the big 3 American firms in Detroit.

Central to this culture has been the planned progression from manager to manager.  Founded by Kiichiro Toyoda in 1936 the Toyoda family has had a firm hand in guiding the company throughout the 20th century, with Eiji Toyoda and Shoichiro Toyoda both managing the company for extended periods in the mid/late 20th century.

Mr Toyoda continues that legacy.  He joined the company in 1984 so has served an extensive apprenticeship.  Nepotism isn't a word that can be labelled at Toyota, their leaders are chosen because they are the best for the job and fully understand the culture of the company.  Akio Toyoda has long been seen as a leader of the company and rose through the ranks twice as fast as his predecessor, Katsuaki Watanabe.  He will be the first member of the founding family in 14 years to become president, taking over at a crucial time for the company.  The company are hoping that re-uniting the company with its family routes will help guide it through these difficult times.

His appointment as president "represents the sense of crisis within the company," said Tatsuya Mizuno, an analyst at Fitch Ratings.

"Mr Toyoda is thought to be charismatic, because he is a member of the founding family. But we do not know yet what his management style will be. They need a drastic change of strategy," he said.  

In the current climate it's certainly a baptism of fire for the new president, but we wish him the best of luck.