Toyota Motor North America boss achieves another milestone

by James Bryant, April 20th, 2007, 7:00 am

Last week Toyota Motor North America (TMNA) president Jim Press became the first non-Japanese person in Toyota history to be named to the company’s board of directors, and the move comes at a pivotal time for Toyota, and for the industry. The promotion does not officially take effect, however, until it is approved by shareholders at the annual meeting in June.

Current Toyota board members have recently expressed concern that an all-Japanese board might be sending the wrong signals. While wishing to appear more international, the company also would like to avoid any bad blood like that which spawned the “Buy American” consumer backlash of the 1980s when worries of a Japanese invasion of trade and investment were the flavor of the month.

Concern of a backlash stems from Toyota’s relentless gains in market share and sales in the US. Toyota currently has a 16% share, a mere one point behind Ford, and within spitting distance of GM’s 22%. In fact most industry watchers think that Toyota will topple GM as the world’s largest carmaker within two years. As the Detroit Three contract their operations, Toyota is growing on their home turf. The company recently announced the building of a new assembly plant in Mississippi, bringing the total number of US plants to eight.

The decision to promote Press is also due in no small part to his experience in guiding Toyota’s success on US shores. Press started with Toyota in 1970 after a two-year stint with Ford. Since that time he’s had a steady rise, becoming president of Toyota Motor Sales in 2005. He became president of TMNA in mid-2006 after his predecessor, Hideaki Otaka, became embroiled in a sexual harassment suit and resigned. He is also the first non-Japanese executive to run TMNA.

Bringing Press into the fold as a director coincides with the expansion of Toyota’s board from 25 seats to 30. Over time this may mean the addition of even more international faces.