Core Viewpoint - Toyota maintains its position as the top-selling automaker in FY2024, but its operating profit has declined by 10% to 4.8 trillion yen (approximately 232 billion RMB) [1]. Group 1: Financial Performance and Leadership Compensation - Toyota's internal estimates suggest a potential 34.9% drop in net profit by FY2025, reducing it to 3.1 trillion yen [2]. - Despite the declining profits, Chairman Akio Toyoda received a salary of 1.949 billion yen (approximately 94.25 million RMB), marking an increase of over 20% [3]. - In FY2023, Toyoda's salary reached a record high of 1.622 billion yen, with a staggering 62% increase, sparking controversy [5]. Group 2: Leadership and Governance - Akio Toyoda's leadership is characterized by a high approval rating of 97%, raising questions about the value he brings to Toyota [7]. - The governance structure at Toyota has historically involved cross-shareholding, limiting Toyoda's ownership to less than 1% [10]. - Toyoda's rise to power involved a long journey through various roles within the company, showcasing a deep understanding of its operations [13][14]. Group 3: Strategic Direction and Electric Vehicle Transition - Under Toyoda's leadership, Toyota has focused on revitalizing the brand and expanding its product offerings, including sports and luxury vehicles [28]. - The company has engaged in international collaborations, investing in companies like Uber and Didi, while also partnering with competitors like BYD [42]. - Toyoda has been vocal against a rapid shift to electric vehicles, citing concerns over job losses and carbon emissions, while also committing to a 4 trillion yen investment in electrification [46][47]. Group 4: Organizational Changes and Future Outlook - Toyota has begun restructuring its employment practices, moving away from lifetime employment to a performance-based pay system [73]. - Recent strategic moves include the acquisition of its parent company, Toyota Industries, to streamline operations and enhance its transition to new technologies [82]. - The upcoming Lexus localization project aims to establish a manufacturing facility in China, set to begin production in 2027, indicating a significant shift in production strategy [85].

Group 1 - The rise of resignation agency services in Japan is a response to the traditional rigid workplace culture, where employees often feel unable to resign directly due to social pressures [1][2] - The concept of "lifetime employment" and seniority-based salary increases has been a core feature of the Japanese labor market, but changing demographics are shifting employee bargaining power [1] - A survey by Tokyo Shoko Research in 2024 indicated that nearly 10% of Japanese companies have received resignation notices submitted by agencies, highlighting the growing acceptance of this service across various industries [1] Group 2 - Resignation agencies in Japan can be categorized into three types: private companies, law firms, and labor unions, with approximately 100 agencies in total, the majority being private [2] - Private agency staff typically only communicate the employee's intention to resign to the employer and do not engage in further negotiations or provide legal advice [2]

Core Insights - Japan's "no retirement society" is a reflection of deep-rooted systemic challenges arising from an aging population, economic pressures, cultural norms, and policy enforcement [2][3][4] - The aging population in Japan, with 29.1% aged 65 and older, has led to a significant decline in the working-age population, creating a precarious pension system [2][3] - Economic factors, including a low public pension replacement rate and increasing financial gaps for retirees, compel many elderly individuals to remain in the workforce [3][5] - Cultural perceptions of retirement as a form of social death drive older individuals to seek continued employment, even when not financially necessary [3][4] - Policy measures have progressively raised the retirement age, pushing the workforce participation of older individuals [3][4] Japan's Dilemma - The "no retirement society" is not an ideal solution to aging challenges but a response to labor shortages and pension pressures, leading to deeper structural issues [5][6] - Health risks associated with older workers in physically demanding jobs raise concerns about their well-being and safety [6][7] - Many elderly workers are forced into low-paying, unstable jobs, perpetuating a cycle of poverty among the aging population [6][7] - The increasing presence of older workers in the labor market creates intergenerational tensions and concerns about job competition among younger workers [6][7] - Over-reliance on older labor may stifle innovation and dynamism in the economy, as decision-making may become more conservative [6][7] China's Path Forward - China faces a similar aging trend, with projections indicating that the population aged 60 and above will exceed 400 million by 2035, necessitating reforms in the pension system [8][9] - Unlike Japan, China's economic context and technological advancements may provide opportunities to mitigate the impacts of aging through automation and industry upgrades [8][9] - The traditional family support system in China may offer a buffer against the challenges of an aging population, unlike Japan's experience [8][9] - The key question for China is whether it can build a resilient system to address aging before the demographic wave fully arrives, focusing on pension reforms and quality job creation for older individuals [9][10] - Solutions should prioritize a balanced approach that respects individual choices, enhances social security, and leverages technology to improve productivity [10][11]