Toyota Profits Plunge 43% as CFO Kenta Nishimura Takes Over as CEO to Stabilize Finances

Toyota Motor Corporation released its third-quarter financial results for fiscal year 2026 on March 1, reporting a sharp 43% year-over-year decline in net profit to JPY 1.26 trillion. The drop was primarily attributed to approximately JPY 1.2 trillion in losses stemming from U.S. tariff policies, compounded by high R&D expenditures incurred under former President Koji Sato’s “multi-pathway” strategy. The company announced that current CFO Kenta Kon will succeed Sato as CEO effective April 1, 2026. Sato will transition to the role of Vice Chairman and assume the newly created position of Chief Industry Officer, focusing on internal and external collaboration. Kon brings 35 years of financial experience at Toyota, having previously served as personal secretary to Akio Toyoda and participated in AI and autonomous driving technology development for the subsidiary “Woven City.” Markets are watching closely to see whether Kon’s leadership will strengthen financial discipline and lower the break-even point, though concerns remain that an excessive focus on cost-cutting could undermine product innovation and technological differentiation.