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April 15, 2025

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Toyota program welcomes next-gen entrepreneurs

By Tonya McMurray

As many first-generation business entrepreneurs begin to reach retirement age, Toyota actively understands its suppliers’ succession plans and helps prepare a new generation of leaders. 

“We look at our suppliers as partners rather than just a source of materials,” said Matt Greene, senior manager, supplier diversity, Toyota Motor North America Inc. “For us, it’s natural to want to partner with the next generation and help them better understand us and try to forge those relationships early.” 

One example of how Toyota is helping to prepare the next generation is an intensive succession training program it conducted for the children of a group known as The Five Compadres.

The Five Compadres were selected by Toyota to become Tier I suppliers for its San Antonio, Texas plant. The group comprises Berto Guerra, chairman and CEO, Avanzar Technologies; Frank Herrera, chairman, HERO Assemblers and HERO Logistics; Max Navarro, chairman, OpTech Corp. and VuTex Inc.; Fernando Reyes, president, Reyes AmTex Automotive; and Rosa Santana, founder and CEO, Santana Group (See related story on Page 26).

In each of these companies, the founders’ children are already taking on leadership roles, getting ready to assume control when their parents retire. Greene stated that this makes the next generation of the Five Compadres an ideal candidate for an in-depth orientation to Toyota’s history and culture.

“These individuals are already managing the businesses, so they are familiar with the Toyota way,” he said. “We’ve found that the most successful succession plans are those that fully engage the people who are going to take over, giving them responsibilities within the organization and giving them leadership roles for years before they actually take over. And that’s what’s happening with the Compadres.” 

In 2023, Toyota engaged the next-generation Compadres in additional training about Toyota and Japanese culture.

The succession planning initiative began with a three-day training session organized by the company’s Operations Management Development Division at Toyota’s San Antonio plant. Several vice presidents and general managers from Toyota discussed various aspects of the business, including manufacturing processes, purchasing, operations, engineering and continuous improvement. Prominent Toyota leaders followed up with visits to the suppliers on-site.

The second part of the training was a week-long trip to Japan. It started with a visit to the company headquarters in Toyota City, where next-generation suppliers met with the heads of several divisions to learn about Toyota’s expectations for suppliers. The suppliers then toured the Toyota Museum, learning about Toyota’s history from its beginning as a loom company to its transition into the automotive industry. They spent a day in Kyoto immersed in Japanese culture, including visits to various temples, learning about Japanese gardens, and experiencing a traditional tea ceremony. 

“While we make many decisions here in North America, a lot of decisions are also made in Japan,” Greene said. “It’s crucial for us to get those next-generation leaders connected to our Toyota Motor Corporation leaders to begin to build those relationships and partnerships that are necessary for us to do business together. This helps solidify who Toyota is and how to work with Toyota for these suppliers.”

Toyota has conducted similar trainings with its executives and other suppliers. Greene said Toyota actively works with identified successors in supplier companies to ensure continuity in its supplier base. 

“These businesses are in tune with us as a corporation,” he said. “We want to make sure that if they pass the company to someone else, the new individual who will lead the organization is aware of our priorities and how we do business.”

This year, Greene began asking Toyota’s buying teams to check in with the company’s top suppliers to ask if they have a succession plan and are willing to share it with Toyota. 

“Toyota is built on relationships and partnerships with our suppliers,” he said. “We may have an idea of succession plans, but asking the question gave us confirmation, so we clearly understand where they’re headed.”

While Toyota does not advise its suppliers on their succession plans, the company does want to work with suppliers to ensure that the next generation is educated and prepared to continue the partnership.

“They know best what will work for them,” he said. “Toyota prides itself on not interfering in the way our suppliers manage their businesses. We are asking the question so we can understand their plans and continue to maintain our relationships with them through changes in ownership.” 

To learn more about Toyota Motor North America Inc., visit Toyota.com.