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Toyota Moves to Downsize Its Board
Keywords:
Plans to reduce the number of board members in Toyota's Board of Directors, from the 27 today to something closer to 12 directors. The move is designed to enable serious discussion at the highest levels and lead to speedy decisions.
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Toyota's Board of Directors, size, insularity and the cultural context
03/08/2011
Plans to change the board to have fewer directors- closer to 12 compared to 27 today- so that discussions can be carried on at the highest level and lead to speedy decisions. A similar change was made at Honda Motor.
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Toyota Panel makes its recommendations for changes in global management structures
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Reforms and restructuring after the 2010 recalls. The Toyota panel said there needs to be one executive responsible for the entire U.S. operation. Before the crisis in vehicle safety Toyota had separate engineering, sales and production operations, but no head of the entire U.S. operation. Honda and Nissan have a head of U.S. operations. Another problem the panel sees is the insularity of the Japanese headquarters management. It recommends foreign directors be appointed to the board. Even after the safety crisis and a change in management structure to a smaller board, the lack of foreign directors remains a serious unaddressed problem.
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