Toyota Stock (NYSE:TM)
After the announcement of the first CEO transfer at Toyota Motor Corporation (NYSE:TM) in 14 years, shares of the world’s second-largest carmaker by revenue slid lower on Thursday. On April 1, Akio Toyoda, CEO for many years, will step down and become chairman, making way for Koji Sato to take over as president and CEO.
Bank of America described the Toyoda resignation and succession announcement as startling in its initial analysis of the CEO development.
“The new CEO’s effects need to be tracked closely. Mr. Toyoda is a powerful spokesperson for Toyota because he is a founding family member. He won the trust of Toyota employees and the public with the company’s successful earnings recovery following the East Japan Earthquake. He is a member of the Japanese Imperial Family. “Expert Kei Nihonyanagi wrote about it.
According to BofA’s analysis, a diverse set of executives will be tasked with implementing the mobility company’s business plan. In an automotive sector experiencing structural transformation, Toyota (TM) is said to have resolved to speed up the pace of change, with the new leadership structure as the primary target.
Au Kabucom Securities analyst Tustimo Yamada of Japan was similarly taken aback by the new CEO’s youth. “I was immediately curious as to how many higher-ups he had bypassed. Akio Toyoda is the only person capable of making such a huge choice. “In his observation, he made the following. The hiring is seen as hastening a generational shift at Toyota, which might have positive or negative effects.
Daiju Aoki, a UBS Sumi Trust Wealth economist, also provided his thoughts on Toyota stock after the company’s reorganization.
“Overseas investors have seen Toyota slow to the electrification race since the business has deployed many choices, including electric vehicles, hydrogen vehicles, and the company’s existing gasoline-powered automobiles. Suppose the new leadership at Toyota can emphasize industries dependent on next-generation energy sources like electric automobiles. In that case, the company may be able to shed its reputation as technologically regressive.”
Toyota stock declined 0.80% to $144.92 a share.
Featured Image: Google Images @ tmgrup