Hiroshi Okuda, the former president of Toyota Motor Corporation who led the early launch of the world's first mass-produced hybrid vehicle, the Prius, and expanded overseas production, 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, Japan. He graduated from Hitotsubashi University in 1955 and joined Toyota Motor Sales. 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 demonstrating his skills in negotiating the recovery of overdue funds. He was appointed to the board of directors 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 U.S., Okuda joined the North American Business Preparation Office, where he was responsible for selecting factory sites. The Kentucky plant he chose later became a key production base for Toyota in North America.
In August 1995, after Shoichiro Toyoda stepped down due to illness, Okuda became president. He was the first non-founder to hold the position in 28 years, marking a significant change 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. He also revamped the luxury brand, Lexus, which helped restore domestic market share to the 40% range, excluding mini vehicles.
Okuda emphasized 'environment' as a core value for next-generation vehicles. He instructed the engineering team to accelerate the Prius launch schedule by one year, resulting in the world's first mass-produced hybrid vehicle debuting in 1997. The Prius, known for its reasonable price and high fuel efficiency, continues to see increasing sales. The Asahi Shimbun reported that hybrids have become a cornerstone of Toyota's strength as the world's leading automaker.
Okuda broke the closed management practices known as 'Mikawa Monroism,' referring to the inward-looking culture of the Aichi Prefecture, where Toyota's headquarters is located. 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 became influential in business circles. In the same year, he was appointed president of the Japan Business Federation (Keidanren) and became the first chairman of the Japan Business Federation, formed in 2002 through 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. He also had a close relationship with then-Prime Minister Junichiro Koizumi, who advocated for a 'shift from government to private sector.' Okuda participated in key policy decisions, including structural reforms and social security system revisions, as a private member of the Council on Economic and Fiscal Policy, the government's economic policy advisory body. He warned shortly after taking office, "Japan is a runner that is one lap behind. The seriousness of deflation is due to the lack of progress in structural reform."
During his four years as Keidanren chairman, he proposed nearly 200 policy recommendations. He criticized the management style of companies that cut staff first in response to performance recovery. 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 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, to support 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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