Toyota(TM) - 2026 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company is focusing on enhancing its earning power to support future growth, indicating a shift in management strategy to improve productivity and create more affordable vehicles [4][5][7] - The break-even volume has been increasing over the past one to two years due to external factors and price levels, highlighting the need for a robust structure to withstand challenging environments [68] Business Line Data and Key Metrics Changes - The company aims to maintain a balance between production volume and quality, emphasizing the importance of delivering vehicles to customers while ensuring high standards [50] - There is a recognition that the company has been too focused on individual functions rather than a holistic view, which is being addressed through a more cross-functional approach [69] Market Data and Key Metrics Changes - The company acknowledges the competitive landscape, particularly with advancements in autonomous driving technology from competitors like Tesla and Chinese manufacturers, and is committed to leveraging its extensive data from annual sales and user interactions to catch up [63][64] Company Strategy and Development Direction - The new executive structure is designed to address management challenges and enhance collaboration within the industry, with a focus on maintaining international competitiveness [5][6][8] - The company is committed to transforming into a mobility company while continuing to prioritize the production of ever better cars, which remains central to its mission [72][78] Management's Comments on Operating Environment and Future Outlook - The management emphasizes the importance of creating an environment that fosters innovation and collaboration among engineers to tackle future challenges [66] - The leadership transition is seen as an opportunity to strengthen the company's focus on profitability while still adhering to its core values of quality and customer satisfaction [95] Other Important Information - The company is undergoing a significant leadership change, with Kenta Kon appointed as the new President and CEO, succeeding Koji Sato, who will take on a broader industry-focused role [1][2][7] - The management has expressed a commitment to corporate governance and diversity within the board, aiming to enhance decision-making processes [20][21] Q&A Session Summary Question: What is the current situation of Toyota's capabilities in autonomous driving technology? - The company acknowledges that while it is not currently advanced in autonomous driving compared to early entrants, it has a significant amount of data to leverage for future developments [63][64] Question: What challenges does the company face regarding break-even volume? - The company recognizes that break-even numbers have been increasing and aims to create a structure that can withstand tough environments while fostering cross-functional awareness [68][69] Question: What accomplishments did Koji Sato achieve during his presidency? - Sato highlighted the importance of taking action towards becoming a mobility company and emphasized the need for continuous improvement in car production [72][73] Question: How will the management structure change under Kenta Kon's leadership? - Kon stated that the team management approach will remain, focusing on collaboration to achieve the goal of making ever better cars and transforming into a mobility company [78] Question: Will there be any concerns regarding conflict of interest with the ATICO project? - Kon assured that there is an information blockade in place to manage any potential conflicts of interest during the transaction process [91]