Hiroshi Okuda, Former Toyota CEO Who Led Global Expansion, Dies at 93

Hiroshi Okuda, the former chief executive of Toyota Motor Corp. who steered the Japanese automaker's significant global growth, has died. He was 93. A company spokeswoman confirmed Okuda's death on Wednesday, though the date and cause were not immediately released. Toyota and many other major Japanese companies were on summer break this week.

Okuda led Toyota as president and then chairman from 1995 to 2006. During his 45-year tenure, he was instrumental in the development of the gas-electric hybrid Prius, which debuted in 1997. The Prius became a symbol of the automotive industry's move toward fuel-efficient and environmentally conscious vehicles, a reputation Okuda helped solidify for Toyota, particularly as gas prices surged. Models like the Camry sedan also contributed to Toyota's growing market share.

Born in the region where Toyota is headquartered, Okuda graduated from Hitotsubashi University in 1955 with a degree in business. Unlike many leaders at the world's top automaker, he was not a member of the founding Toyoda family. He was known for being outspoken and often shared quick laughs.

Okuda was a key figure in Toyota's international expansion, not only in sales but also in establishing manufacturing plants in the United States and Europe. A black belt in judo, he voiced concerns about potential backlash as Toyota's rise led to the decline of American automakers like General Motors, Ford, and Chrysler.

He often emphasized the global and interconnected nature of the auto industry, using the term "harmony" to describe this relationship. During the 1980s and continuing into the 2000s, Japanese automakers such as Toyota, Honda, and Nissan saw substantial profits while their American counterparts struggled, a period that also saw sentiments of "Japan-bashing" emerge, partly due to the weak yen which offered Japanese manufacturers a perceived competitive advantage.

Okuda also advocated for promoting younger managers within the company, a practice that was less common in Japanese corporate culture at the time, though it often meant empowering executives in their 50s rather than their 60s. He articulated a philosophy of continuous improvement and adaptation, stating in 2005, "A company must change when things are going well. There’s no point in trying to change after things start going bad." This mindset aligns with Toyota's core principles of "kaizen," or continuous improvement, and just-in-time production.

Beyond his role at Toyota, Okuda served as head of several prominent business organizations, including the Japan Business Federation (Keidanren), the Japan Automobile Manufacturers Association, the Prime Minister’s Economic Strategy Council of Japan, and the Japan Federation of Employers’ Associations.

Funeral arrangements are being handled by his family, and the company indicated that plans for a more public memorial may be announced later.