Hiroshi Okuda, Toyota Chief Who Drove Global Expansion, Dies at 93
Hiroshi Okuda, who led Toyota's global expansion and championed the Prius hybrid, has died at 93.
Hiroshi Okuda, the former chief executive of Toyota Motor Corp. who steered the Japanese automaker's ascent into global markets, has died. He was 93. The company confirmed his death on Wednesday, though the date and cause were not immediately disclosed.
Okuda served as president and later chairman of Toyota from 1995 to 2006, a period marked by aggressive international growth. Under his leadership, Toyota expanded not just sales but also manufacturing, establishing production plants in the United States and Europe.
He is perhaps best remembered for championing the development of the gas-electric hybrid Prius, launched in 1997. The model's fuel-efficient technology was groundbreaking at the time and became a symbol of the industry's shift toward greener driving. Okuda also helped cement Toyota's reputation for fuel efficiency with models like the Camry, especially as global gas prices surged.
Born in central Japan, near Toyota's headquarters, Okuda graduated from Hitotsubashi University in Tokyo in 1955 with a business degree. He was an unusual leader in that he was not from the founding Toyoda family, which had traditionally supplied Toyota's top executives.
Known for his outspoken nature and quick laugh, Okuda was also a judo black belt. He frequently voiced concerns about potential backlash as Toyota's growth threatened the dominance of America's "Big Three" automakers—General Motors, Ford, and Chrysler. He emphasized the interconnected nature of the global auto industry, often using the word "harmony" to make his point.
During his tenure, Japanese automakers were posting huge profits while their American counterparts struggled, fueling "Japan-bashing" sentiment that dated back to the 1980s. A weak yen was also cited as giving Japanese makers an unfair advantage, as it inflated the value of overseas earnings when converted back to yen.
Okuda was an advocate for promoting younger management, a rarity in Japanese corporate culture at the time. "A company must change when things are going well," he told reporters in 2005. "There's no point in trying to change after things start going bad." This philosophy aligned with Toyota's core principle of continuous improvement, known as "kaizen," and its just-in-time production system.
Beyond Toyota, Okuda held leadership roles in major business organizations, including the Japan Business Federation (Keidanren), the Japan Automobile Manufacturers Association, and the Prime Minister's Economic Strategy Council. He also served as an adviser to Toyota's board when the company added its first American member, Jim Press, in 2007.
Toyota said funeral arrangements are being handled by the family, with details on surviving relatives not immediately available.