“Unless things change, we will not survive. I want everyone to acknowledge this sense of crisis.”

Japan’s Toyota has issued a distress call before it “goes under.”
Toyota’s CEO, Koji Sato, delivered a stark warning: “We will not survive if things continue as they are.”

His warning was addressed to nearly 500 top suppliers during the company’s annual supplier conference in… pic.twitter.com/WRuqjhGO9a

— China pulse 🇨🇳 (@Eng_china5) April 19, 2026

Toyota’s then-CEO Koji Sato told nearly 500 top suppliers at the company’s annual supplier conference in Tokyo on March 25, 2026, that the auto industry faces a fierce “battle for survival” due to rapid advances by Chinese competitors.

He said: “Unless things change, we will not survive. I want everyone to acknowledge this sense of crisis.”Sato stressed the need to slash costs, dramatically boost productivity, relax some overly strict internal quality standards on minor components, speed up innovation, and work more closely with suppliers to close the gap with faster, lower-cost Chinese automakers. He also pointed to quality issues and production delays at Toyota and its suppliers as problems that must be fixed quickly.

The speech was one of Sato’s final major acts before he stepped down as CEO on April 1 and moved to the role of vice chairman. Incoming CEO Kenta Kon attended the same event and backed the call for transformation.