Cars

Toyota's New CEO Uninformed on Celica Revival Progress

The automotive world is abuzz with speculation as Toyota's new chief executive, Kenta Kon, steps into his role with an unexpected revelation. A seasoned finance professional, Kon has confessed to having no direct knowledge regarding the ongoing development of the highly anticipated Celica sports car. However, he maintains a hopeful outlook, believing the project is moving forward. This candid admission comes at a pivotal moment for the Japanese automaker, as it navigates a leadership transition and continues its commitment to both enthusiast models and evolving market demands.

Toyota's Leadership Shift and the Celica's Future

On February 8, 2026, Toyota announced a significant change in its executive leadership. Kenta Kon, a distinguished finance executive within the company, is slated to become the new CEO, officially assuming his duties on April 1. This appointment has drawn considerable attention, particularly from automotive enthusiasts who eagerly await the return of iconic models like the Celica. During a recent press conference, Kon, when questioned about the Celica's status, openly stated his unfamiliarity with its current development. Despite this, he shared his admiration for the Celica nameplate, citing its appearance in the 1987 film "Watashi no Ski ni Tsuretette" as a fond memory, and expressed a general assumption that its development is indeed progressing.

Kon's background as Chairman Akio Toyoda's secretary from 2009, followed by leadership roles in accounting and finance since 2017, indicates a strong financial acumen. While his primary focus has traditionally been on the fiscal health of the company, the ongoing efforts of Toyoda and the outgoing CEO, Koji Sato, in advancing performance models under the Gazoo Racing (GR) division suggest a continued dedication to enthusiast-oriented vehicles. With Kon's ascendancy, it is anticipated that he will become more deeply involved in product development, especially given Toyota's strategic positioning as a brand that caters to car enthusiasts. This is further highlighted by Toyota's commitment to internal-combustion engine models, even as rivals like Volvo pivot towards electric vehicles.

The speculated return of the Celica, potentially as an all-wheel-drive (AWD) coupe, aims to differentiate it from existing rear-wheel-drive (RWD) models such as the GR86 and GR Supra. Given Toyota's aggressive embrace of hybridization, as exemplified by the RAV4 becoming an exclusively hybrid offering in the U.S., it is plausible that a new Celica, or even a GR Celica, could integrate electric motors into its powertrain. As Kon takes the reins, there is a prevailing sentiment that the Celica project will remain on track, provided that new financial directives do not impede enthusiast-focused programs. The intensifying competition from Chinese automakers, known for their cost-effective vehicles, may prompt Toyota to consider cost optimization, a domain where Kon's financial expertise will undoubtedly be valuable. Reports suggest that the Celica nameplate could make its highly anticipated comeback within the next one to two years, bringing a wave of excitement to its loyal fan base.

The announcement of a new CEO, particularly one with a finance background, always sparks discussion about a company's future direction. For Toyota, Kenta Kon's admission regarding the Celica's development highlights a potential shift in internal communication or a deliberate focus on financial oversight during this transitional period. However, Toyota's established commitment to high-performance vehicles and its willingness to retain internal combustion engines, alongside embracing electrification, demonstrates a strategic flexibility that could prove beneficial. The automotive industry is rapidly evolving, and a leader who can balance financial prudence with innovative product development will be crucial for navigating these changes. Enthusiasts, while perhaps momentarily concerned by the lack of specific details, can take solace in the broader vision of Toyota to continue delivering engaging driving experiences, with the Celica's return symbolizing a beacon of this enduring passion.

World Rally Championship's Potential Return to the United States

The World Rally Championship (WRC) is poised for a significant comeback in the United States, an event that hasn't graced American soil since 1988. This potential return marks an exciting development for motorsport enthusiasts and could significantly boost rallying's profile in North America. FIA officials are set to visit potential host locations in Tennessee and Kentucky this June, demonstrating a serious interest in re-establishing a WRC presence across the Atlantic. This initiative is a collaborative effort with the Automobile Competition Committee of the U.S. (ACCUS), aiming to lay the groundwork for a full WRC event as early as 2027.

FIA Explores US Venues for WRC Return: A New Era for American Rallying

In June, officials from the Fédération Internationale de l'Automobile (FIA) will undertake a critical tour of proposed sites in Kentucky and Tennessee. This visit is twofold: to evaluate the suitability of these regions for hosting a premier rally event and to attend an American Rally Association (ARA) competition to gauge the operational aspects and local enthusiasm for the sport. This inspection is a crucial step towards the potential reintroduction of a World Rally Championship round in the United States, a feat not accomplished in over three decades. The last WRC event in the US was held in 1988, making this an eagerly anticipated development for American rally fans. The initiative is fueled by a desire to tap into a new audience, mirroring the recent surge in popularity for Formula 1 in the States. The WRC’s return would be a monumental occasion for both the international racing body and the North American rallying community, offering a more accessible and engaging spectator experience compared to other major motorsports.

The prospective return of the World Rally Championship to American stages presents a thrilling opportunity for both seasoned fans and newcomers. It could reawaken a dormant passion for rallying in a country with a rich, albeit often overlooked, history in the sport. The intimate and grassroots nature of rally events, where spectators can experience the raw power and skill of drivers up close, stands in stark contrast to the more distant and commercialized atmosphere of other high-profile racing series. This move could not only elevate the profile of rallying but also inspire a new generation of American drivers and teams. The anticipation is palpable, with many hoping that the FIA's visit will pave the way for exciting events, potentially featuring local talent in support categories. The long wait for top-tier rally action in the US may finally be drawing to a close, promising a resurgence of dirt-flinging, adrenaline-pumping motorsport.

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US Mandates Removal of Chinese Software from Connected Vehicles

Automakers are facing an urgent directive from the U.S. government: purge all Chinese-written code from connected vehicles. Starting March 17, new national security regulations will prohibit core connected systems from containing software developed in China or by Chinese firms. This extensive rule covers cloud-connected functionalities such as telematics, cameras, microphones, GPS, and advanced driver-assistance systems. While hardware restrictions on connectivity components are slated for 2029, the immediate software mandate has sent the industry into a scramble to ensure compliance. The Commerce Department's Bureau of Industry and Security, the issuing body for this regulation, has presented carmakers with one of the most intricate compliance tasks in recent memory, requiring rigorous audits of layered supply chains where software origins are often obscured by subcontractors and joint ventures. Although tracking critical semiconductor sources is feasible, identifying embedded code poses a much greater challenge. Some exceptions may apply, and Chinese code transferred to non-Chinese entities before the deadline will be deemed permissible, prompting significant restructuring within the supplier landscape.

The impact on U.S.-based manufacturers is profound, given their reliance on Chinese-developed middleware, connectivity modules, and cloud integration. Replacing hardware is complicated but manageable; replacing software is far more intricate. Automotive software is typically custom-made, deeply integrated into vehicle architectures, and prohibitively expensive to redevelop or validate within the tight deadlines. This leaves little room for error. Furthermore, potential collaborations are also being scrutinized. Ford, for instance, has engaged in discussions with BYD regarding hybrid technologies, a partnership now subject to increased regulatory review. General Motors, however, appears to have anticipated this shift, having already directed its suppliers to eliminate Chinese-made components by 2027. Despite this foresight, disentangling software dependencies remains a distinct technical hurdle compared to managing physical component sourcing.

This software prohibition emerges amidst growing political resistance to the expansion of Chinese automotive influence in the U.S. market. Dealership groups have advocated for federal intervention to prevent Chinese automakers from establishing or growing their presence, citing economic and security concerns. The connected-vehicle regulation reinforces this stance, impacting not only vehicles manufactured in China but also any connected car produced by Chinese-controlled companies, regardless of where they are assembled. Given the dominant global share held by Chinese cellular-module suppliers, this rule targets a critical vulnerability in contemporary vehicle design. Parallels have been drawn to U.S. reliance on rare earth minerals and past examinations of Chinese telecommunications companies. For the foreseeable future, this regulation may effectively block Chinese-branded vehicles from entering the American market. Its long-term effect as either a permanent barrier or a temporary geopolitical tool will depend on future developments in trade policy and enforcement.

In a rapidly evolving global landscape, the automotive industry stands at a critical juncture, navigating the complexities of technological integration and geopolitical realities. The current challenges highlight the necessity for robust cybersecurity measures, diversified supply chains, and forward-thinking collaborations that prioritize national security without stifling innovation. By proactively adapting to these changes, the industry can ensure long-term resilience and continue to drive progress, fostering an environment where innovation thrives responsibly and securely.

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