Akio expresses profound thoughts to company shareholders

Toyota's Resilience Amidst Challenges: Highlights from the 116th Ordinary General Meeting

In the face of the global COVID-19 pandemic, Toyota Motor Corporation took precautions to ensure the safety of its shareholders and executives at the 116th Ordinary General Meeting held on June 11, 2020. Transparent screens were placed between attendees to prevent the spread of the virus.

President Akio Toyoda opened the meeting, focusing on Toyota's efforts in strengthening its corporate composition and his personal thoughts on the financial results announcement. He expressed regret and shame about the past financial struggles of Toyota, particularly the deficit of 461 billion yen the company faced in the year immediately after the global financial crisis.

Over the past seven years, Toyota has been gradually strengthening its corporate composition through cost reductions. This was evident in the financial results for March 2020, which showed an operating income of over 2.4 trillion yen, a drop in operating profits of just one percent year-on-year despite the impact of COVID-19, and a forecast with an operating income of 500 billion yen for the current running term to March 2021.

Akio Toyoda emphasised Toyota's responsibility as a key member of the automotive industry to provide a financial forecast, as it benefits society as a whole. He made a personal commitment never to accept a loss in the company's future.

The meeting began with a business report video, followed by opening comments from President Akio Toyoda, a Q&A session, closing comments, and voting. Toyota also made genuine efforts to achieve true mutual understanding with employees during labor consultations.

Since becoming president in 2009, Toyota has revised its executive and organizational structure. This includes the introduction of an in-house company system, the establishment of a "Seven Samurai" structure, and the discontinuance of the post of executive vice president.

Despite these efforts, Toyota aimed to strengthen its true competitiveness during a three-year "intentional pause" but did not obtain sufficient results. As a result, the company has been engaged in both "a fight to bring back what makes us Toyota" and "completely redesigning Toyota for the future" for a few years.

Akio Toyoda revealed his innermost thoughts during the meeting, things he dared not say to the media. He found it difficult to carry out reforms in "normal times", but the challenges posed by the pandemic have made it clear that Toyota must adapt and innovate to survive and thrive.

The chairman of the supervisory board of Toyota Motor Corporation, who opened the meeting, was Akio Toyoda. He referred to the shareholder meeting as an opportunity to communicate directly with shareholders, who are partners that share in the ownership of the company. The meeting provided a platform for Toyota to share its progress, challenges, and future plans with those who have a vested interest in the company's success.

In the years leading up to the global financial crisis, Toyota increased its production capacity significantly, leading to a significant increase in fixed costs. This over-expansion ultimately contributed to the company's financial struggles. However, Toyota has learned from its past mistakes and is now focused on maintaining a lean and agile structure to respond to market demands and challenges effectively.

In conclusion, the 116th Ordinary General Meeting of Toyota Motor Corporation was a significant event, marking a new chapter in the company's history. With a renewed focus on strengthening its corporate composition, Toyota is well-positioned to navigate the challenges of the future and continue to be a leading player in the global automotive industry.