Toyota Kenya managing director Naoki Takeuchi signs a dummy cheque for Sh2.5 million at a past event in January 2013. He has been recalled and will be redeployed. FILE
What you need to know:
Naoki Takeuchi, the chief executive since last April, has been recalled to Japan for redeployment.
He has been replaced by Sachio Yotsukura, who was the general manager in charge of Africa at Toyota Tsusho Corporation.
Yotsukura will be expected to drive the firm’s diversification plan with a focus on the heavy commercial vehicle segment of the market.
Toyota Kenya has hired a new CEO in a management change that comes in a quarter when its top rival General Motors East Africa has opened the biggest lead over the Japanese auto-maker.
Business Daily has learnt that Naoki Takeuchi, the chief executive since last April, has been recalled to Japan for redeployment. He has been replaced by Sachio Yotsukura, who was the general manager in charge of Africa at Toyota Tsusho Corporation — the parent company of Toyota Kenya.
The change in the corner office takes place when General Motors has opened a seven percentage point lead over Toyota, the biggest margin since it replaced the Japanese auto firm as the country’s top seller of new vehicles in 2010.
“Mr Yotsukura is the new managing director for Toyota Kenya. He was here last week but is currently in Japan,” said an executive of the auto firm who spoke on condition of anonymity since the new head is yet to be formally announced. Toyota confirmed the changes, but refused to give details until May 8.
The new Toyota MD will be expected to drive the firm’s diversification plan with a focus on the heavy commercial vehicle segment of the market where it has just entered with Hino Trucks brand (see article).
Toyota relies heavily on saloon car sales that in recent years has come under serious attack from second-hand imports and reduced demand from corporate Kenya.
This has helped its rivals that have a heavy presence in the heavy commercial vehicle segment like GM to grow market share at Toyota’s expense. GMEA has benefited from a heavy presence in the truck and bus market where sales have been driven by vibrant economic activity in the East African region.
Data from the Kenya Motor Industry Association show that GMEA sold 734 units in the three months to March, giving it a 26 per cent market share compared to 19 per cent by Toyota which sold 525 units. Toyota’s market share has dropped from 26.6 per cent in 2005.
Toyota started selling the Hino brand of trucks and buses last month, entering a market segment that has been dominated by GMEA. This market is expected to be the focus of Mr Yotsukura.
The two companies have been locked in a battle for supremacy in the new vehicle market since GMEA first grabbed market leadership from Toyota in 2010, with the two rivals regularly unseating each other.
Mr Yotsukura will be Toyota’s fourth CEO since 2009 and in keeping with its tradition it will stick with a Japanese head. The firm in October 2009 broke this tradition when it hired South African Hylton Bannon as CEO before he was abruptly replaced by Dennis Awori, the chairman of Toyota Kenya, after serving for two years.
Sources at the firm told the Business Daily that Mr Bannon was replaced after failing to fit in Toyota’s corporate culture.
The traditional Japanese management style practiced by Toyota tends to focus on team spirit and consensus more than a boss who leads from the front as in the western way of running executive suites.
