Toyota Appoints New CEO as Japanese Automakers Face Tariff Pressures
Toyota reaches historic 50 trillion yen revenue while appointing new CEO, as SUBARU faces 70% profit decline from tariffs and Kirin sells U.S. whiskey business amid industry restructuring.
Key Points
- • Toyota appoints Kenta Chikashi as president effective April 1, 2026.
- • Toyota projects first-ever 50 trillion yen annual operating revenue despite tariffs.
- • SUBARU reports over 70% profit decline, revises forecasts downward significantly.
- • Kirin sells Four Roses whiskey brand amid global alcohol consumption stagnation.
Japan's automotive and beverage industries are undergoing significant leadership transitions and strategic shifts as companies navigate global trade tensions and changing market conditions. These developments carry implications for foreign residents working in or investing in Japanese corporations.
Toyota Motor Corporation announced on February 6 that Kenta Chikashi, currently serving as an executive officer, will assume the role of president effective April 1, 2026, according to NHK. Current President Koji Sato will transition to vice chairman. This leadership change comes as Toyota projects its operating revenue will reach 50 trillion yen for the fiscal year—the first time any Japanese automaker has achieved this milestone.
Despite facing headwinds from U.S. tariff measures under the Trump administration, Toyota's performance remains robust due to strong sales in Japan and North America. The company's ability to maintain growth amid trade tensions demonstrates the resilience of Japan's largest automaker and suggests relative stability for the approximately 370,000 employees worldwide, including thousands of foreign nationals working at Toyota facilities in Japan.
The leadership transition at Toyota represents a generational shift in management at one of Japan's most prominent global corporations. For expats employed in the automotive sector or related industries, such changes often signal potential shifts in corporate culture, international expansion strategies, and hiring practices. Toyota's continued strong performance may also provide reassurance to foreign residents concerned about economic stability in Japan's manufacturing heartland.
In stark contrast, fellow automaker SUBARU reported dramatically different financial results for the April-December 2025 period. The company experienced a profit decline exceeding 70 percent, heavily impacted by U.S. tariff measures, NHK reported on February 6. SUBARU has subsequently revised its full-year profit forecast downward, reflecting the challenges facing mid-sized Japanese automakers in the current trade environment.
The divergent fortunes of Toyota and SUBARU highlight how company size and market positioning affect resilience to external shocks. For foreign professionals in Japan's automotive industry, these results underscore the importance of understanding individual companies' exposure to international markets when making employment decisions.
Meanwhile, Kirin Holdings announced it will sell Four Roses, its American whiskey subsidiary, to a U.S.-based company, according to NHK on February 6. The decision reflects Kirin's strategy of "selection and concentration" as global alcohol consumption stagnates. This divestiture represents a significant retreat from overseas spirits operations for one of Japan's leading beverage manufacturers.
Kirin's strategic pivot may signal broader trends in Japanese corporate strategy, with companies reassessing international acquisitions made during more optimistic economic periods. For expats working in Japan's food and beverage sector, such restructuring could affect career opportunities, particularly in roles focused on international business development or overseas subsidiary management.
The timing of these announcements—all within a 24-hour period in early February—suggests Japanese corporations are making decisive moves to position themselves for challenging global conditions. The U.S. tariff measures mentioned in multiple reports appear to be driving strategic recalibrations across industries.
For foreign residents in Japan, these developments offer several insights. First, Japan's largest corporations continue to generate strong revenues despite global headwinds, suggesting overall economic stability. Second, leadership transitions at major employers may create new opportunities as incoming executives reshape organizational priorities. Third, companies are actively managing their international portfolios, which could affect expats in roles connected to overseas operations.
As these companies implement their new strategies throughout 2026, foreign professionals should monitor how leadership changes and restructuring efforts affect their sectors and employers, particularly regarding international assignments and cross-border business functions.