The Wall Street Journal Editorial Board writes about the blow to shareholder activism at Toyota.
- Akio Toyoda has won re-election to be Toyota Chairman after facing backlash for advocating for diversification and choice in the automotive market.
- Toyoda has pushed for electric vehicle mandates to be less aggressive and has been candid with the public about the challenges of building a fully electric vehicle fleet which earned the ire of activist shareholders.
- Toyoda re-election is good for free markets and free enterprise.
- Companies should invest in clean technologies because it makes fiduciary sense and because there is market demand, not because activists demand it.
“Technological innovation rather than government mandates is what will ultimately drive consumers to buy electric vehicles. Toyota seems to understand this as it unveiled new batteries this week that it says it plans to introduce in new vehicles in 2026 that would extend the vehicle range to 620 miles and reduce costs by 20%. This would be an industry breakthrough if and when it happens. Meantime, consumers deserve a choice of cars to buy.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
