Toyota and Daihatsu held a press conference to announce Daihatsu's new leadership. We unpack the comments made at the event to find out how the incoming team plans to revitalize the company.
Aims of the new leadership structure
What was your aim in appointing Inoue as the incoming president?
Toyota President Koji Sato
Daihatsu must begin by thoroughly implementing the measures for preventing recurrence that were recently reported to the Ministry of Land, Infrastructure, Transport and Tourism.
They consist of three pillars: management reform, culture reform, and monozukuri/kotozukuri (making things and ideas) reform.
This will no doubt take time. We require farsighted reforms that enable people on the front lines to speak their minds and engage in conversation to restore Daihatsu’s essence.
Inoue is a leader who has overcome language barriers and tackled very challenging business environments, mainly in emerging countries, by prizing communication.
He was selected because we believe that he will work with employees and engage in dialogue with the genba to set Daihatsu on the right course.
What is your aim in sending the next president over from Toyota rather than picking from within Daihatsu?
President Sato
It wasn’t about choosing between Toyota or Daihatsu, but rather selecting the most suitable person within the entire Group, with the primary consideration of leading management from the genba.
Kuwata, who will be involved as vice president, currently serves in that role at Toyota Motor Kyushu, where weekly dialogues with frontline employees have given him a keen sense of the monozukuri genba atmosphere and mindset.
With such personnel firmly supporting Inoue, the entire Group will work to restore the essence of Daihatsu.
As Chairman Akio Toyoda recently emphasized, we must return authority to the genba and draw on various perspectives to confirm the right way of doing things. This is the mindset behind the management team reshuffle.
At the same time, Daihatsu has many passionate, extremely proactive employees who care about and give their all for the company. Another key mission for the new management team will be to nurture young talent for Daihatsu’s future.
Hoshika has watched Daihatsu over the course of 42 years and often shares stories that evoke the company’s early days.
I have seen for myself that Daihatsu is a company where people help each other and care about each other.
The new appointments are about ensuring that all employees, not only management, revisit the question of what makes Daihatsu unique and come up with an answer.
Daihatsu Incoming President Masahiro Inoue
With Yanagi’s expert oversight, Hoshika’s unmatched knowledge of Daihatsu, Kuwata’s professional experience in developing organizations, and my commitment to communication, the four of us will work as one team to address the certification system issues and revitalize the company.
I believe that’s the reason we were sent, and we will hit the ground running at full speed from March 1.
When and from whom did you learn of being appointed president, and how did you feel?
Incoming President Inoue
We had the conversation about two and a half weeks ago. I was on a business trip in Lima, Peru, when a meeting notification suddenly arrived.
I was surprised that the meeting was with Chairman Toyoda and President Sato. It took place in the middle of the night, so I set my alarm, got up to join, and then was told about these plans.
(Having just woken up) I thought for a moment that it might be a dream, but when they informed me, I trembled at the weight of this responsibility.
That said, I already had a working relationship with the people at Daihatsu, whose small cars are very competitive in emerging countries. I was pleased by the opportunity to work together.
Why do you think you were chosen as the next president? How do you think your experience will contribute to Daihatsu?
Incoming President Inoue
During the online meeting, when I was given the offer, I received a message from Chairman Akio.
For the past five years, I have been based in Latin America, where our operations cover 40 countries and regions. He told me, “You have connected with the frontline sales and production staff and worked hard to create a united team. I think these achievements are one of your strengths.”
Given Daihatsu’s current issues and future challenges, I felt that rather than a top-down organization, we need to create an ideal mix of top-down and bottom-up.
I think I was chosen because my experience in this area makes me a good fit for the job.
I’ve spent half my life overseas, working in both manufacturing and the front lines of sales. I feel that I can empathize and converse with people across all positions.
I think the selling point was my character and communication skills, which will enable me to connect with everyone at Daihatsu and our stakeholders.
Are the chairman and president resigning to take responsibility?
President Sato
Their resignations are not about assigning responsibility, but rather part of the reorganization necessary to restore Daihatsu’s essence and ensure these issues do not happen again.
In making this decision, I spoke at considerable length with President Okudaira about the structure that should drive Daihatsu’s revitalization moving forward. He offered to step down from his position.
Similarly, Hoshika, who will stay on as vice president, also offered to resign of his own volition.
In discussing and considering the situation, we have made sure to consider the views of those who feel responsible for the company’s management.
However, particularly regarding Hoshika, Chairman Toyoda emphasized the need for efforts to return authority to the genba.
Having observed the company for so long no doubt gives him a greater understanding of the issues, and this personnel plan was intended to focus efforts on restoring the true Daihatsu.
To reiterate, these changes are not about assigning responsibility.