Hiroshi Okuda, the former president of Toyota Motor Corporation who led the early launch of the world's first mass-produced hybrid car, the Prius, and expanded overseas production to propel Toyota's global growth, passed away on August 8 due to age-related health issues, Japanese media reported on August 12. He was 93 years old.
According to the Yomiuri Shimbun, Okuda was born in Tsu, Mie Prefecture, graduated from Hitotsubashi University, and joined Toyota Motor Sales in 1955. After spending many years in the accounting department, he was dispatched to the Philippines. Although this was seen as a demotion, he turned it into an opportunity by proving his capabilities in negotiating the recovery of overdue funds. He was appointed as a director in 1982 by Shoichiro Toyoda, a member of the founding family.
When Toyota decided to enter the U.S. market independently in response to trade friction between Japan and the United States, Okuda joined the North American Business Preparation Office, where he was responsible for selecting factory sites. The Kentucky plant he chose later became Toyota's primary production base in North America.
In August 1995, after Tatsuya Toyoda, the then-president and a member of the founding family, stepped down due to illness, Okuda became president. He was the first non-founding family member to lead Toyota in 28 years, marking a significant shift since the merger of Toyota Motor Sales and Toyota Motor Corporation in 1982. Upon his appointment, he stated, "I have the pride that if Toyota changes, Japan changes," signaling a major management overhaul.
At that time, Toyota was struggling with declining domestic market share and delays in overseas expansion. Okuda diagnosed that the company was suffering from 'big company disease' due to excessive time spent on internal consensus. He encouraged change, stating, "Doing nothing is the worst thing." He established a new sales network targeting younger consumers and introduced the compact car, the Vitz, aimed at the same demographic. He also revamped the luxury brand, Lexus, which helped restore domestic market share, excluding mini cars, to the 40% range.
Okuda emphasized 'environment' as a core value for next-generation vehicles. He instructed the engineering team to accelerate the release schedule for the Prius, which was launched in 1997 as the world's first mass-produced hybrid vehicle. The Prius, known for its reasonable price and high fuel efficiency, continues to see increasing sales. The Asahi Shimbun reported that the hybrid vehicle has become a cornerstone of Toyota's strength as the world's largest automaker.
Okuda broke the closed management practices known as 'Mikawa Monroism.' Mikawa refers to the eastern Aichi Prefecture, where Toyota's headquarters is located, and describes an inward-looking culture. He established factories in North America, Europe, and Asia, while also strengthening environmental technology development and shareholder-focused management. The Nihon Keizai Shimbun (Nikkei) noted that he laid the groundwork for Toyota's growth into the world's largest automaker by changing its insular corporate culture.
As Toyota rapidly increased its sales in the global market, Okuda became a figure that the American automotive industry viewed with caution. During U.S.-Japan automotive negotiations, issues of wiretapping targeting him arose.
Okuda became chairman of Toyota in 1999 and served until 2006, during which he gained prominence in the business community. In the same year, he became president of the Japan Business Federation (Keidanren), and he was the first chairman of the Japan Business Federation, formed in 2002 from the merger of Keidanren and the former Economic Organization Federation. His extensive international connections, including friendships with former U.S. Treasury Secretary Robert Rubin and Russian President Vladimir Putin, were cited as factors in his appointment as Keidanren's first chairman. He also had a close relationship with then-Prime Minister Junichiro Koizumi, who advocated for a shift from government to private sector.
Okuda served as a private member of the Council on Economic and Fiscal Policy, the government's economic policy advisory body, participating in key policy decisions such as structural reforms and social security system revisions. He warned from the outset of his chairmanship that "Japan is a runner that has fallen a lap behind. The seriousness of deflation is due to the lack of progress in structural reform."
During his four years as Keidanren chairman, he made around 200 policy proposals. He criticized the practice of companies reducing staff first as a means of recovering performance. In a long-term vision released in January 2003, he addressed sensitive issues such as the need for a consumption tax increase and the acceptance of foreign labor in light of Japan's declining population. The Nikkei pointed out that he transformed the role of Keidanren's chairman from one of merely mediating interests to one of actively voicing opinions.
In 2008, Okuda received the Order of the Rising Sun, the highest honor from the Japanese government. In 2012, he became the president of the Japan Bank for International Cooperation (JBIC), which was separated from the Development Bank of Japan, supporting Japanese companies seeking to expand overseas. He concluded his association with Toyota in 2018 when he stepped down as an advisor. His funeral will be a family affair, and details regarding a memorial service have not yet been determined.
* This article has been translated by AI.
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