Toyota considers a new management structure image

Toyota Motors plans an important shift in its management structure, as the automaker believes its operations should be grouped according to the product type, not by geography reasons.

For a better management of its global operations, Toyota Motor considers the idea of dividing its business into separate companies, in accordance with its products, rather than with regions. Therefore, the plan is to make distinct entities for passenger vehicles, compact cars, commercial vehicles and also for the premium Lexus brand. This strategy shift has been reported by the Japanese Nikkei business newspaper. The current Toyota management structure organizes the company into two geographical groups, with Lexus and engines forming the other two groupings. The paper did not mention if the new groups came as an addition to the existing ones or if the later were to be replaced. The reorganization will give the newly formed companies as much autonomy as possible for them to expand according to the products they develop. It would also be a good opportunity for Toyota to nurture next-generation leaders by adopting the new system.

Toyota has increased the pace in its efforts to gain more visibility in the automotive world, wanting to grow in all segments, after a long period during which the company had to regroup and find its own path. Standing as proofs for this expansion commitment, the automaker signed partnerships with BMW and Subaru and also teamed up with Mazda last year. It also announced a 1-billion-dollar investment in a research institute near Stanford and MIT for artificial intelligence and robotics.

Via Bloomberg