Toyota unveils new management system

NAGOYA March 30, 2003; Japan Today reported that Toyota Motor Corp said Friday it will introduce in June a new management system featuring a sharply streamlined board of directors and the new position of non-board managing officers.

The planned change in the top management structure is in part "aimed at accelerating managerial processes by streamlining the number of board members and at speeding up operations by bringing the decision-making structure less vertical," the biggest Japanese automaker said in a statement.

The new board of directors will consist of 20 to 30 members of senior managing director rank or higher. Each will be appointed for a one-year term.

Non-board managing officers, to be chosen on a performance basis, will number about 30 to 40 persons, each in charge of daily operations in specific fields and divisions, and will include non-Japanese and younger appointees as well as executives at Toyota's overseas affiliates. They will be appointed also for a one-year term.

Under the new management system to be introduced after this year's general shareholders meeting in June, Toyota will also increase the number of outside corporate auditors to four from the current three.

Separately, Toyota said it will create Toyota Housing Corp. on Tuesday by spinning off the sales division of its housing business.

The move is designed to strengthen the housing business by responding to customers' needs more quickly and accurately in terms of planning and sales, Toyota said.

Toyota Housing will be established in Nagoya with a capital of 100 million yen and will begin operating in January next year. With a workforce of around 200, the new company is expected to chalk up 100 billion yen in sales in fiscal 2005. (Kyodo News)