Toyota Motor shareholders re-elected Akio Toyoda as chairman at Thursday’s annual general meeting, reinforcing support from retail investors despite intensifying criticism over the automaker’s contentious ¥4.7 trillion ($33 billion) bid to take subsidiary Toyota Industries private, according to Reuters.
Toyoda, grandson of Toyota’s founder and former CEO, secured his position unopposed by proxy advisors Glass Lewis and ISS for the first time in three years, though his approval margin remains undisclosed after last year’s record-low 72% backing.
The re-election unfolded days after Toyota Industries’ shareholders questioned executives about the buyout’s fairness to minority investors. Overseas shareholders argue the ¥16,300-per-share offer significantly undervalues the forklift manufacturer, while strengthening the Toyoda family’s control over Japan’s largest corporate group.
Toyota Motor defends the acquisition as essential for “deepening collaboration” within the group, liberating Toyota Industries from short-term profit pressures amid Toyota’s transition toward broader mobility solutions.
Retail investor Akihiro Horiuchi, attending his second AGM, reflected broader confidence: “Toyota (Motor) is the best company in Japan and I think it will continue to grow.” He noted the automaker had clarified its rationale via the Toyo Times news platform, satisfying most attendees despite the buyout’s complexity.
Toyoda’s leadership has faced sustained governance concerns, with shareholder support sliding from 96% in 2022 to 72%. Though Glass Lewis and ISS endorsed him this year, reversing prior opposition, neither adviser disclosed specific reasons for the change.
As Toyoda consolidates power, the buyout exemplifies Toyota’s dual identity: a global innovator navigating shareholder capitalism while preserving dynastic control.
