Toyota announces plan to restructure its board

Toyota announced plans to restructure its board on Tuesday in what it described as an attempt to bring in more diverse views and give a larger roles to auditors.

Among six appointments is Christopher Reynolds, now an executive in the automaker’s North American operations. As a lawyer, and son of a Ford worker, he brings experience in human resources and risk management, according to Toyota.

The number of women on the 10-person board will grow from one to two with the appointments of Kumi Fujisawa, an independent outsider and entrepreneur, and Hiromi Osada, previously a Toyota auditor. George Olcott, previously an auditor, will also join the board.

The number of outside members will rise from four to five.

Takanori Azuma, a Toyota Human Resources official, said the new board includes auditors for the first time.

The company’s internal controls have come under scrutiny since it admitted to cheating on certification tests for seven vehicle models last year.

Azuma said the additions are designed to bring diverse views to its leadership as “weapons for survival” in a changing environment.

“It would be a mistake to assume that what we think up internally will be what our customers and people around the world can empathize with,” he said.

The maker of the Camry sedan and Lexus luxury models has been trying to transform itself into what it calls “a mobility company” as the auto industry undergoes drastic changes including the arrival of powerful relative newcomers like Tesla and BYD.

Chairman Akio Toyoda, from the company’s founding family, and Chief Executive Koji Sato’s positions will remain unchanged.

The company will seek approval for the new board at a general shareholders’ meeting later this year.

Yuri Kageyama is on Threads: https://www.threads.net/@yurikageyama

—Yuri Kageyama, AP Business Writer

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