Toyota CEO Koji Sato:A Car Is Not a Car If It's Not Fun

AshleyMay 21, 2025, 11:37 AM

【PCauto】"A Car Is Not a Car If It's Not Fun" – this statement coming from Toyota CEO Koji Sato is truly surprising, but upon careful consideration, it actually makes sense.

Although Akio Toyoda has stepped down as Toyota's CEO, his successor Koji Sato needs to work closely with him. Therefore, it's reasonable that Sato's attitude reflects Akio Toyoda's own stance.

Moreover, Koji Sato not only previously oversaw Lexus but also was the president of Gazoo Racing, showing perfect alignment with Akio Toyoda's philosophy, as both share a passion for race cars. If there are any automotive CEOs worldwide who still like driving race cars, Akio Toyoda undoubtedly stands among that rare group.

Moreover, Toyota has always been known for manufacturing reliable and economical vehicles. This reputation isn't built by Akio Toyoda, but by the previous CEO of Toyota, Katsuaki Watanabe (in office from February 2005 to 2009).

During Katsuaki Watanabe's tenure, he actively implemented the "CCC21" plan (Cost Competition for the 21st Century), adopting standardized and generalized design, such as reducing the number of car door handle models from 35 to 3, which simplified the complexity of the product line, lowered production and management costs, and improved production efficiency.

The "CCC21" plan proved highly successful, enabling Toyota to surpass the total profits of the three major American auto companies in situations where the output value is not advantageous, securing a favorable position in the competitive market with more affordable products. With the growth of its sales, Toyota's reputation for affordability and easy maintenance has been firmly established worldwide.

When Akio Toyoda took office, he sought to transform this image by initiating the TNGA (Toyota New Global Architecture) reform. The slogan at that time wasn't as radical as today's "A Car Is Not a Car If It's Not Fun," but rather the declaration to "Make Better Cars," with a future vision to "produce more, better cars that appeal to younger generations."

Post-TNGA Toyota vehicles features high thermal efficiency engines, CVT transmissions with gear drive mechanisms, lower center of gravity, more powerful hybrid systems, and refreshed exterior designs. With these changes, Toyota delivers an enjoyable driving experience, and its chassis performance surpasses many automotive journalists' expectations. Some automotive media conducted track comparisons between the TNGA-based Avalon and BMW 3 Series, unexpectedly finding the Avalon could achieve higher cornering speeds than BMW 3.

After the popularization of TNGA to most of the models under Toyota, Koji Sato’s statement that "A Car Is Not a Car If It's Not Fun" is actually reasonable, which means that Toyota's cars will continue to evolve and become more interesting.

Koji Sato has stated that Toyota can no longer sell cars with merely appearance updates or slight fuel efficiency improvements. The future Toyota cars will have more sporty design and more sensual driving experience.

Meanwhile, Toyota Gazoo Racing (GR) plans to actively expand the GR product line, covering various types including popular hatchbacks, flagship supercars, and SUVs. In terms of technology application, GR will incorporate cutting-edge innovations while preserving gasoline engines and manual transmissions. In addition, at least three new GR models will be launched in the future. There are rumors that the models could be the Yaris Cross, Corolla Cross and RAV4, or they could be the GR Starlet, GRMN Prius and GR Crown.

Toyota is a very excellent company where each CEO has a distinctive leadership style. As a large-scale auto company, it can effectively execute the vision of each CEO. Over decades, Toyota has hardly made any strategic mistakes — like its  hybrid technology invented in 1997 continues yielding profits today. More interesting Toyota cars will soon come out.

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