Toyota (TM.US) shareholders fully support President Zhang and the new CEO: AI, Siasun Robot & Automation, and the hybrid strategy will not hit the brakes.

Toyota Motor Corp. Sponsored ADR shareholders voted on Tuesday to approve the re-election of Akio Toyoda as chairman and to support the new CEO Kenta Kon joining the board. This is the first annual shareholders meeting held during Kenta Kon's tenure, reflecting the shareholders' high approval of the leadership of this car manufacturer. Shareholders also approved the re-election of four other directors. Akio Toyoda is the grandson of Toyota founder Kiichiro Toyoda, entered Toyota in 1984, became president in 2009 and served for 13 years. In 2023, he will pass on the president's role to Kozo Sato and become chairman. These appointments signify investors' support for the development direction of this global best-selling car company. Currently, Toyota's hybrid electric vehicle (HEV) sales are continuing to grow in markets such as the US and Japan. In the just released fiscal year 2025, Toyota's total revenue reached 48.4 trillion yen, a 6.5% year-over-year increase; global car sales were 11,011,000 units, maintaining its position as the top-selling global car company. Although operating profit and pre-tax profit declined slightly year-on-year, the net profit reached 4.77 trillion yen, ranking first among global car companies in terms of net profit. Kenta Kon stated in a post-meeting media interview that the company will continue to steadily invest in growth areas such as artificial intelligence (AI), Siasun Robot & Automation technology, and the "multi-path strategy" that utilizes various powertrains, and will not suddenly hit the brakes. Kenta Kon, who previously served as Akio Toyoda's secretary, became CEO in April of this year and has now officially obtained a seat on the board of directors. Former CEO and current vice chairman Koji Sato has exited the board. Under the shadow of GEO Group Inc., Toyota Motor Corp. Sponsored ADR Affected by the conflict in the Middle East, Toyota Motor Corp. Sponsored ADR global sales have seen a year-on-year decline for the third consecutive month, with car exports to the Middle East region dropping by over 90%. The latest data shows that Toyota's global car sales in April fell by 3.7% year-on-year to 902,015 units; however, production during the same period increased by 3.4% to 933,685 units. Despite disruptions in the Strait of Hormuz shipping, Toyota's factories continue to operate normally, with the impact of this conflict being less severe than for other car manufacturers. However, if the tense supply chain situation persists, Toyota's resilience will be tested, highlighting the high dependence of global car manufacturers on component, raw material, and energy supplies in the Gulf region. Market demand remains strong, with consumers in some major markets having to wait for months to receive their cars. But compared to last year, Toyota's sales have declined. Last year, due to the pre-tariff buying spree and the launch of the new RAV4 sport utility vehicle, Toyota's sales were boosted. Toyota's suppliers have previously warned that they are facing supply shortages due to the Iran conflict. Toyota admits that the Middle East turmoil has caused the company a loss of 670 billion yen, a gap that is difficult to fill. Financial reports show that Toyota Motor Corp. Sponsored ADR's operating profit for the fourth quarter ending in March fell by 49% to 569.4 billion yen, significantly below market expectations. Due to the continued pressure from US tariffs, Toyota Motor Corp. Sponsored ADR has seen a year-over-year decline in operating profit for the fourth consecutive quarter. At that time, Toyota also lowered its operating profit guidance for the new fiscal year ending in March 2027 by more than 20%, to 3 trillion yen (approximately 188 billion US dollars), below analyst expectations and lower than the previous year's 3.8 trillion yen.