While he may not be as familiar to the public as the automaker’s various nameplates, Bob Carter has become just as much of a fixture at Toyota Motor North America during his 41 years with the company.
Serving since 2017 as the carmaker’s head of sales, the 62-year-old Carter will retire this month. He will be succeeded by Jack Hollis, currently the head of North American automotive operations. The announcement of Carter’s retirement comes amidst a broader management shakeup that sees a number of other senior managers leaving the company.
“For over four decades, Bob has been an advocate for our dealers and customers, providing insightful leadership and sound and principled judgment in sales and marketing,” Ted Ogawa, the CEO of Toyota Motor North America, (TMNA) said in a statement. “Bob leaves a legacy of many ‘firsts,’ including Toyota and Lexus leadership in key segments, dealer satisfaction and profitability, and sales leadership in North America, to name a few.”
Four decades of service
Carter worked his way up during the decades to become perhaps the best-known face at the Japanese automaker’s North American operations. He has played a critical role in its growth throughout the years, Toyota so far leading rival Ford in terms of retail sales during the first five months of 2022.
But he also helped guide the carmaker through difficult times, including the so-called “unintended acceleration” scandal that hit the Lexus brand a decade ago. The automaker took a much more pragmatic and open approach to the issue than did Audi when it was hit with similar concerns several decades earlier. Carter’s candidness — even while downplaying claims of “runaway” cars — helped Lexus and Toyota weather the crisis with relatively little damage. Today, Lexus is one of the best-selling luxury brands in the U.S.
New challenges to meet
Nonetheless, Carter leaves his successor, Hollis, with some serious challenges. During an appearance at a weeklong media event last week, Toyota HQ Confidential, the outgoing sales chief outlined some of the issues. The ongoing semiconductor shortage has slashed Toyota production, leaving dealers with a diminishing supply of vehicles. As of the beginning of June, he noted, there is a 1.5-day supply on showroom lots. The industry norm is more than 60, though Toyota typically operates with a leaner 40-day inventory.
In a subsequent interview with TheDetroitBureau.com, Carter said the even bigger issue is “runaway inflation … causing us to price beyond what the consumer may be able to pay.”
“None of us has ever seen anything like this” current situation, said Carter. It will now be up to Hollis to cope with the lack of supply at the same time costs surge out of control. If there is a positive side, inventory shortages have created significant pent-up demand that could bring a bounce to car sales going forward — if price hikes can be kept to a minimum.
Carter is just one of the executives planning to retire, Toyota announced. Others include:
- Zack Hicks, the 59-year-old head of Toyota Connected North America and chief digital officer for TMNA, will leave on July 22. Among other things, Hicks oversaw the development of the new voice-operated infotainment system rolling out among new Toyota and Lexus products;
- Tracey Doi, the 61-year-old CFO at TMNA, will retire August 1. She will be replaced by Tim Ingle, group vice president for enterprise strategy;
- Mike Owens, group president and chief risk officer for Toyota Financial Services, retires on July 15.
Other management changes include:
- A shift by Cooper Ericksen, currently head of product planning and strategy, to a new position as senior vice president for product, BEV and mobility planning and strategy.
- Sandra Phillips Rogers will also move into a new post as senior VP of corporate resources and general counsel;
- And Sean Suggs will now serve as president of the new battery manufacturing center Toyota is setting up in North Carolina. He has been serving as TMNA’s chief social innovation officer.