Toyota shares hit 16-month high as shareholders endorse board, new EV strategy
Toyota shareholders voted to retain Akio Toyoda as chairman as Japan Inc comes under increasing pressure to engage shareholders to boost profitability.
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People arrive to attend an annual shareholders' meeting for Toyota Motor in the city of Toyota, Aichi Prefecture on June 14, 2023. Toyota is under pressure from large institutional investors for chairman Akio Toyoda to step down over his lukewarm embrace of electric vehicles.
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Toyota shares soar
Toyota shares closed up 6.3% at 2,310 Japanese yen ($16.48) per share in robust volumes — their highest close since Feb. 9, 2022. Their record closing high at 2,390 Japanese yen per share was recorded Jan. 9, 2022. On Wednesday, Toyota shares outperformed the 1.5% gain on the Nikkei and 1.3% rise for the Topix benchmarks in Tokyo. The rally on Wednesday added to sizeable gains seen on Tuesday.
A small number of overseas institutional investors had agitated against the reappointment of Toyoda — a grandson of the founder of Toyota Motors — as chairman, taking issue with the independence of the company's board, given that he was the Toyota's chief executive until April 1 this year.
Some investors have also criticized the company's strategy of focusing on multiple fronts across hybrid, gasoline and electric vehicles has hurt its competitiveness. Toyota argues that this helps to cater to the diverse needs of customers in different regions, which they anticipate will differ further in future — pledging to "accelerate localization" in plans they unveiled on Tuesday.
