Toyota's Messages as Intercultural Comm Examples

Toyota’s messages about executive changes are good examples of how these announcements vary by culture. CEO and President Akio Toyoda (the family name spelling) has served in the position for 13 years. Unlike Reed Hastings, who served for 25 years at Netflix and also announced his move to chairman this week, Toyoda wasn’t a company founder, but his grandfather was, so his tenure is important. And yet, we see what looks like fanfare compared to the Netflix announcement. Here are the communications, and I’ll comment below:

• TMC Announces Changes to Executive Structure. A webpage includes links to other communications and handy “current” and “new” tables showing changes.

• Toyota Times News Special Live Broadcast. For more than an hour and a half, outgoing and incoming executives discuss the decision.

• Passing Toyota's Presidency Baton from Akio Toyoda to Koji Sato. Another page includes remarks from the incoming and outcoming CEOs, transcribed from the video.

Here are a few ways the remarks differ from typical U.S. messages, and I’m sure that students will find more:

• In the introduction and in his remarks, Akio Toyoda says the decision was “triggered by Chairman Uchiyamada’s resignation.” This is a way for the outgoing CEO to save face—as though his removal is based on a board opening.

• He also demonstrates humility and vulnerability in ways we don’t typically see from an outgoing U.S. CEO. He mentions, “I was appointed president immediately after our company’s fall into the red due to the global financial crisis,” and “Following that, our company faced a series of crises that threatened our survival, such as the global recall crisis and the Great East Japan Earthquake.” Although the financial crisis and earthquake were out of the company’s control, the recalls were self-inflicted, and I’m surprised to hear him remind the press. At the same time, that crisis was early in his tenure and rather unforgettable, including testimony on Capitol Hill.

• Toyoda also says, ”There was a time when Mr. Sato was struggling with what he should convey at a Lexus dealer convention.” Toyoda advised, “Rather than try to be like me, I want you to value your individuality.” Toyoda tells the story to illustrate Sato’s “love” for company products. Still, I wonder whether a U.S. CEO would reveal such a vulnerability—”struggling” was the translation—of an incoming executive.

• Twice in his short speech, Toyoda mentions Sato’s “youth,” and he says, “Being young is itself a key attribute.” This comment would be highly unlikely in the U.S., where age discrimination laws might cause older executives to immediately call their lawyers. (Also surprising: Toyoda is 66, while Sato is 53.)

• Only once do either of the executives mention EV, which is arguably the real reason Akio Toyoda is stepping down. He has resisted the move to EV and, as a result, Toyota is behind other car companies. In his closing remarks, Sato refers to “accelerating the shift to electrification”—a funny, but translated and probably unintentional car reference.