Toyota Motor Corp (ADR) (NYSE:TM) Announces The Retirement Of Managing Officer

Toyota Motor Corp (ADR) (NYSE:TM) managing officer, Julie Hamp has stepped down from her position after being arrested on narcotics allegations.

Hamp was the company’s first female managing officer. She retired from her post as a result of the unfortunate incident last month where she got arrested on account of smuggling drugs into Japan. The company posted a statement on its website saying that it accepted her resignation after taking the concerns of the stockholders into consideration after the incident.

Hamp had been appointed as head of global communications for the company in April. Prior to her resignation, the company’s CEO had launched a press conference to clear her name claiming that it was not her intention to go against the Japanese law.

The managing officer’s arrest is detrimental to Mr. Toyoda’s initiative to diversify the firm’s executive positions. Ms. Hamp has been under the custody of authorities since her arrest on June 18. Her arrest was based on suspicions that she had imported a powerful sedative known asoxycodone. She has not revealed any details to the press as well as the identity of the lawyer that will represent her in court.

In his statement, Mr. Toyoda announced that the company is still dedicated placing the right people in the various leadership ranks, irrespective of gender, nationality, age and other factors. His desire push for change has been mainly inspired by the need to address a flaw involving acceleration problems in the company’s car that began in 2009. The problem has mainly affected the U.S. market, and the incident led to a recall of more than 10 million Toyota vehicles. Toyota Motor Corp (ADR) (NYSE:TM) has been facing issues in its public relations in foreign markets. The firm has thus been seeking diversity to overcome such problems.

Ms. Hamp’s exit does not mean that the company is having issues with the organization structure. Toyota has not announced a replacement for the newly empty position. Earlier this year, the company promoted Didier Leroy as its new Executive vice president.

About the Author

Erica is a graduate of New York University's school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.

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