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Writer's pictureVictor Nwoko

Toyota Shareholders Re-Elect Akio Toyoda, Grandson of Toyota Founder, as Chairman Amid Scandal

Toyota shareholders arrive for a meeting in Toyota, Aichi prefecture, central Japan Tuesday, June 18, 2024. Toyota shareholders voted Tuesday in support of all the company’s proposals, including keeping Akio Toyoda, grandson of the Japanese automaker’s founder, as chairman on the board.
Toyota shareholders arrive for a meeting in Toyota, Aichi prefecture, central Japan Tuesday, June 18, 2024. Toyota shareholders voted Tuesday in support of all the company’s proposals, including keeping Akio Toyoda, grandson of the Japanese automaker’s founder, as chairman on the board.


Toyota shareholders voted Tuesday in favor of all the company's proposals, including retaining Akio Toyoda, grandson of the automaker's founder, as chairman of the board. Although detailed vote counts were not immediately available, the company confirmed that a majority supported its positions. A proposal from shareholders requesting an annual report on Toyota's climate-related lobbying activities was rejected.


The annual meeting, held at Toyota's headquarters in Toyota City, Japan, drew significant attention due to a recent scandal involving fraudulent vehicle certification tests. While the scandal did not result in recalls or safety issues, it tarnished the reputation of the manufacturer known for its quality and innovative production methods.


Under Toyoda, Toyota has been criticized for its "multi-pathway" approach to ecological vehicles, which includes a focus on hybrids and hydrogen fuel rather than solely on battery electric vehicles. The company emphasized its commitment to achieving carbon neutrality by 2050, defending its strategy as transparent and sincere.


Despite the recent controversy, the results of the vote were anticipated, given that Toyota's largest shareholders are Japanese companies, including banks and insurers, which own about 39% of the total shares and are unlikely to challenge the automaker. Other significant shareholders include corporate entities, foreign corporations, and individual investors.


Last year, Toyoda was re-elected with nearly 85% of the vote, down from 96% in 2022. The exact percentage of this year's vote is still unknown. Proxy advisory firms such as Institutional Shareholder Services (ISS) and Glass Lewis had recommended voting against Toyoda's reappointment, citing his accountability for the fraudulent tests and a perceived need for a reshuffling of the board to prevent future issues.


Despite the scandal, Toyota remains the world’s leading automaker, with sales of 9.4 million vehicles in the fiscal year ending in March. The company's profits doubled to 4.9 trillion yen ($31.9 billion), bolstered by a weak yen and increased vehicle sales. Toyota's stock, however, has seen fluctuations, currently trading at above 3,000 yen ($20) after a drop from nearly 3,800 yen ($24).


In his remarks ahead of the meeting, Toyoda addressed the challenges of carbon neutrality, emphasizing the need for collective global effort and a willingness to pursue the best possible solutions.

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