New Toyota CEO Sato keeps options open on clean energy

Tokyo — Koji Sato, who was named on Thursday as the future CEO of top Japanese car maker Toyota is an engineer with a background in diesel engines who will be responsible for the company’s shift to clean energy.

Now the CEO of Toyota’s luxury brand Lexus, Sato will succeed Akio Toyoda as the CEO of Toyota on April 1. Under Toyoda, the carmaker has followed a gradual approach to electric vehicles, arguing that the hybrid technology it pioneered with the Prius will remain important along with investments in hydrogen.

Sato studied diesel engine combustion at university and joined Toyota in the hope of “contributing to society by creating the future of diesel engines”, according to an interview on the website of Gazoo, Toyota’s motorsport brand. Though the 53-year-old oversaw the creation of Lexus’s first fully electric model, he has also talked about keeping open other options for powering vehicles.

In 2022, he talked about the potential of hydrogen while he was in Thailand, where Toyoda was driving a hydrogenpowered Toyota race car at an endurance race, according to the daily Yomiuri. “It won’t be an immediate substitution for electric vehicles, but it’s good for people to know that there are other options available, when the increase of EVs eventually plateaus,” Sato said of hydrogenpowered vehicles in the report.

Sato started his career at Toyota in 1992, before rising through the ranks to become chief engineer of Lexus International in 2016, according to his profile on the Toyota website. He has held positions as the president of Lexus International and Gazoo Racing Company since 2020. He also took on an executive role at Toyota and became its chief branding officer in January 2021.

“The industry itself is facing a once-in-a-century disruption, with many unknowns to navigate,” said John Shook, a former Toyota manager who now consults on the lean management techniques pioneered by the company. “I can imagine that Akio thought now is the time to transition so his successor can steer the ship through the uncertainty ahead.”

In his spare time, Sato enjoys visiting temples in Kyoto and practises Japanese tea ceremonies, according to a profile on the Gazoo website.

Sato still drives the Toyota Supra that was handed down from his father-in-law, the profile said.

One of the main reasons Sato was elected as a successor was his love of creating cars, Toyoda said during the official announcement that was broadcast online.

That passion was obvious in a brief video clip released in 2021, where Sato sits next to Toyoda as they test-drive a Toyota Lexus.

As Toyoda accelerates and whoops excitedly, Sato can be seen with a wide grin and occasionally laughing, unable to contain his delight.