Koji Sato, incoming Toyota CEO, must navigate shift to clean energy

26 January 2023 - 14:46 By Reuters
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Sato studied diesel engine combustion at university and joined Toyota in hopes of "contributing to society by creating the future of diesel engines", according to an interview on the website of Gazoo Racing, Toyota's motorsport brand.
Sato studied diesel engine combustion at university and joined Toyota in hopes of "contributing to society by creating the future of diesel engines", according to an interview on the website of Gazoo Racing, Toyota's motorsport brand.
Image: Supplied

Koji Sato, who was named on Thursday as the new CEO of Japan's top carmaker Toyota, is an engineer with a background in diesel engines who will be tasked with navigating the company's shift to clean energy.

Now CEO of Toyota's luxury brand Lexus, Sato will succeed Akio Toyoda as CEO of Toyota on April 1.

Under Toyoda, the carmaker has followed a go-slow approach to electric vehicles, arguing the hybrid technology it pioneered with the Prius will remain important along with investments in hydrogen.

Sato studied diesel engine combustion at university and joined Toyota in hopes of “contributing to society by creating the future of diesel engines”, according to an interview on the website of Gazoo Racing, Toyota's motorsport brand.

Though the 53-year-old oversaw the creation of Lexus's first fully electric model, he has also spoken of keeping other options for powering vehicles open.

He spoke of the potential of hydrogen last year in Thailand, where Toyoda himself drove a hydrogen-powered Toyota race car at an endurance race, according to the daily Yomiuri.

“It won't be an immediate substitution for electric vehicles, but it's good for people to know there are other options available when the increase of EVs eventually plateaus,” Sato said of hydrogen-powered vehicles in the report.

Sato started his career at Toyota in 1992, before rising through the ranks to become chief engineer of Lexus International in 2016, according to his profile on the Toyota website.

He has held positions as president of Lexus and Gazoo Racing since 2020. He also took on an executive role at Toyota and became its chief branding officer in January 2021.

“The industry itself is facing a once in a century disruption, with many unknowns to navigate,” said John Shook, a former Toyota manager who now consults on the lean management techniques pioneered by the company. “I can imagine Akio thought now is the time to transition so his successor can steer the ship through the uncertainty ahead.”

In his spare time, Sato enjoys visiting temples in Kyoto and practises Japanese tea ceremonies, according to a profile on the Gazoo Racing website. He drives a Toyota Supra that was handed down from his father-in-law, the profile said.

One of the main reasons Sato was elected as a successor was his love of creating cars, Toyoda said during the official announcement broadcast online.

That passion was obvious in a brief video clip released in 2021, where Sato sits next to Toyoda as they test-drive a Toyota Lexus. As Toyoda accelerates and whoops excitedly, Sato can be seen with a wide grin and occasionally laughing, unable to contain his delight.


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