Toyota Breaks Tradition: Appoints Former GM Exec to Board

Toyota Motors earlier announced that it would be implementing changes in its board to make the brand more responsive to different markets, but no one expected the changes to be this radical. On Wednesday, Toyota revealed a new line up of its top brass, starting with the appointment of rival General Motors executive, Mark Hogan.

Toyota was once the world’s largest car manufacturer, but it had suffered major setbacks in production and sales. In 2009, it was forced to recall 14 million units due to different problems. The problem was compounded by production issues brought about by the March 2011 Japan tsunami and the recent spate of flooding in Thailand. The latter provides some of Toyota’s parts and other assembly essentials.
Toyota hopes that with the appointment of Hogan, which will take effect on April 1, will help in regaining the lead from its staunchest rival, General Motors.

An American in Toyota Motors

Mark Hogan’s appointment is seen as a big move by analysts since he is only the second non-Japanese to secure a top post in the company. Back in 2007, another American, Jim Press was appointed head of North American operations. However, he stayed only a while and moved on to work for Chrysler.

According to his profile in Forbes, 59-year-old Hogan has been the director of leading global automotive supplier Visteon Corporation since October 2010. He also served as consultant to various automotive related entities. His leadership experience includes being CEO and President of the Vehicle Production Group LLC, an ingenious company that created and sold cars for individuals suffering from mobility impairment.

Hogan was also an executive in an automotive parts supplying firm and held countless management positions at General Motors Corporation.

Toyota Motors Shakes Things Up

Toyota Motors President Akio Toyoda, grandson of the original company founder, is bent on making the company more competitive, responsive, and globally present. The 56-year-old Toyoda has overhauled the company’s top brass for the third time in a span of four years.
Aside from Hogan, Toyoda is also placing U.S. sales chief James Lentz as the CEO of North America. This newly created post makes Lentz chief of sales as well as production for Toyota’s entire North American operations.

By April 1, Toyota Motors Corp. will also be divided into eight separate regions and classified into four separate business units, namely, Toyota’s mature markets (U.S. and Japan), the Lexus premium car business, other activities such as engine and components production, and Toyota’s emerging markets business. These divisions will not necessarily be run by Japanese executives.

Toyoda issued a statement explaining his decision and merely said that the change in leadership as well as reorganization will help Toyota Motors achieve its set goals and global vision.

New Toyota Motors Execs

The new management positions will be effective by April, however new board members are subject for approval during the annual board meeting in June. Current Toyota Motors Vice Chairman Takeshi Uchiyamada is poised to take the helm as Chairman while incumbent Chair Fujio Cho is set to step down and just take an honorary position.