George Borst, Chief Executive Officer of Toyota Financial Services for around 13 years, is retiring from the company. He will remain as the top honcho at Toyota Financial Services until end of September, Borst announced during a meeting of top Toyota and Lexus dealers. He is turning 65 on September 2, 2013. He will be replaced by Mike Groff, has been chief of Toyota Financial Services' sales and marketing for the past five years.
Groff was seventh employee Toyota Motor Credit Corp. hired when the captive finance company was established in 1983. Borst was credited for leading Toyota Financial Services’ huge gains. Toyota's finance arm saw its assets grew from $21 billion in 1997 to $91 billion today, and its operating income multiplied six times during the period to $1.8 billion. Back in 1997, Toyota only accounted for 34 percent of its dealers' finance business, but now account for 64 percent.
Borst told Automotive News in an interview that Groff is an excellent choice as his successor, thanks to his working experience “in the branches and regions, in operations and strategic planning."
Borst added that Groff’s five years in sales and marketing have been the “toughest five years ever.” In 1985, Borst was tapped by Toyota Motor Sales USA executive Bob McCurry to oversee the marketing department. In 1993, he was tapped as general manager of Lexus Division. His stay at Lexus was marked by the endaka in 1995, a period when the yen appreciated rapidly against, resulting to more expensive exports from Japan to the United States.
“Mike has been an integral part of this company’s achievements for 30 years,” said Borst. “With his deep industry knowledge, his longstanding and strong partnership with our dealers, and a record of proven leadership during both the best and most challenging years this company has experienced, I know he will guide TFS to even greater success.”
Toyota Financial Services is a wholly owned subsidiary of Toyota Motor Corporation (TMC) that coordinates its financial services operations. Toyota Financial Services also has overall responsibility for the financial services subsidiaries around the world.
While the first Toyota Financial Services operation commenced in Sydney, Australia, in 1982 -- as Toyota Finance Australia Limited – the business known now covers more than 30 countries and regions, including Japan. It also has operations not only in the US, Canada and Europe, but also in Asia and Oceania.
Toyota Financial Services’ current global network covers around 90 percent of the markets wherein the carmaker sells its vehicles. In the US, Toyota Financial Service operates through its Toyota Motor Credit Corporation subsidiary, which in turn owns Toyota Financial Savings Bank. Among the financial services offered by the company are auto sales financing as well as credit cards.