Toyota’s surprise management reshuffle could disappoint investors

Toyota Chairman Akio Toyoda surprised the automotive world this week by announcing that he would step down from his post and hand over the reins to Koji Sato, who currently leads the company’s Lexus and Gazoo Racing divisions.

But Toyoda does not go far. The 66-year-old is not retiring outright, but rather retiring to the boardroom, where he will assume the role of chairman.

Insiders also don’t expect Toyoda to be indifferent. A leader said Toyoda was about to embark on a period of “cloister rule”, a period in Japanese history when the emperor retired to a monastery without actually ceding power.

If so, then the Toyota City redesign might not be a redesign at all.