Toyota To Slash Board Members To Improve Decision Making
Toyota, the world’s largest automaker, has been going through some tough times as of late. The automaker has been experiencing recall after recall, which has helped lead to a decline in sales. Now, in an effort to improve decision making, the company will cut its board to at least 17 members, which is down from the current 27, according to Bloomberg.
Toyota currently has 27 directors, which include a chairman, president, six executive vice presidents and 15 senior managing directors. The cut, according to Bloomberg, will reduce the number of executive vice presidents sometime before the next shareholders meeting in June.
“Nothing has been decided yet on our management personnel changes, including that of directors,” Keisuke Kirimoto, a Toyota spokesman said in a phone interview.
President Akio Toyoda announced the move and it will be the first major slash of the board since it was cut from 58 members to 27 members eight years ago. The move is coming at a time when the auto market appears to be rising, but due to recent failures, the company expects to earn less than a third of the $20.4 billion they made in 2008.
All this news comes in wake of the recent recall efforts made by the company. Toyota recently issued a massive 1.7 million-vehicle recall globally due to faulty fuel pumps and pipes, pressure sensors and spare-tire carriers. This recall came after the debacle that was the unintended acceleration issue, which caused a recall of around 8 million vehicles.
Recently, the United States government and the National Aeronautics and Space Administration found that Toyota’s electronics were not to blame for the incident and some have called for the government and the media to make an apology to Toyota. Today, the only known cause of the issue was floor mats that jammed the pedals, causing the vehicles to take off.