New Toyota CEO takes 30% pay cut, sees no recovery for two years

New Toyota CEO takes 30% pay cut, sees no recovery for two years

Filed under: Japan, Toyota, Earnings/Financials

Akio Toyoda, the new President of Toyota and grandson of company founder Kiichiro Toyoda, is predicting another two years of tough times for the auto industry. In order to stay afloat, the Japanese automaker, under the direction of Toyoda, will build more autonomous operations in North America and concentrate on a more region-specific lineup to help the company pull through the recession.

While the company will be steered "back to basics," the changes will not involve plant closures - Toyota wants to make sure it retains capacity for when the market bounces back. Toyoda will also personally take a 30% pay cut this year. "The new Toyota sets sail in very stormy waters," said Toyoda at his first news conference. "But right now we're working at full speed to cut costs and jump-start sales with the support of various government incentives being rolled out... We want to do everything possible to avoid a third consecutive year of losses."

[Sources: Reuters / Reuters]New Toyota CEO takes 30% pay cut, sees no recovery for two years originally appeared on Autoblog on Thu, 25 Jun 2009 16:31:00 EST. Please see our terms for use of feeds.



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Very humble and fitting. I don't see very many CEO's over here doing that for the sake of their company.