DETROIT (Reuters) -- Toyota Motor Corp. named an engineer to head its North American operations and promoted Jim Lentz, who helped orchestrate the Japanese automaker's response to a string of safety recalls that began in late 2009.

The company said today that it had appointed Shigeki Terashi, 57, currently head of its U.S. engineering and manufacturing operations, as president and chief operating officer of Toyota Motor North America Inc.

Terashi replaces Yoshi Inaba, 66, who will remain on the executive committee and retain his position as chairman of the subsidiary Toyota Motor Sales USA Inc.

Lentz, 56, will be president and CEO of the U.S. sales unit, making him one of the highest-ranking American executives at the company.

The moves will take effect April 1, Toyota said in a statement.

Toyota has posted a 10 percent U.S. sales increase this year following a 7 percent decline in 2011 as the company battled inventory shortages stemming from the March earthquake in Japan.

The company's U.S. market share now stands at 13.8 percent, down from 17 percent at the end of 2009. The recall crisis and natural disasters in Asia have kept the automaker from keeping pace with the rest of the industry following the recession.

From 2009 to 2011, Toyota recalled 11.5 million vehicles worldwide due to complaints of unintended acceleration linked to defective floor mats, gas pedals and related problems.

Safety crisis

Lentz and Inaba both played key roles in handling Toyota's response to its safety crisis, which undermined sales and hurt its brand. Both testified in front of U.S. lawmakers and apologized for Toyota's errors during a decade of rapid global growth.

In a particularly damaging 2009 memo to Inaba, Toyota's Washington staff lauded the company's ability to limit a 2007 recall of floor mats. This saved Toyota $100 million, said the memo, which surfaced during the hearings.

Inaba said he did not remember the memo and that it did not represent the automaker's guiding principles and beliefs. Both he and Toyota President Akio Toyoda said they were unaware of key pieces of information that might have helped the company respond faster to safety concerns.

Since then, Toyota has changed its approach to safety by slowing vehicle development and giving more power to regional units so they can handle customer complaints quickly.

Confidence in U.S.

Lentz's appointment is in keeping with Toyota's efforts to develop and promote local talent and "shows confidence in U.S. operations," said company spokesman Steve Curtis.

Terashi, who will retain his current position as president of Toyota Motor Engineering and Manufacturing in North America, joined the company in 1980 in the body engineering design division and began by working on the Camry mid-sized car.

Before assuming his current position, Terashi led the Toyota Technical Center and oversaw the development and launch of the Venza crossover vehicle, Sienna minivan and other products in North America.

Separately, Mark Templin, group vice president and general manager of the Lexus division, has been appointed general manager of Lexus product and marketing planning division, replacing Karl Schlicht.

In addition to his current role, Toyota said Templin's duties have been expanded beyond Lexus North America to include all Lexus product and marketing planning worldwide.

Under the expanded role, Toyota said Templin will oversee Lexus affiliates globally "to enhance and bring more awareness of our Lexus Brand worldwide."

He will continue to report to Don Esmond, senior vice president for automotive operations at Toyota. As general manager of Lexus product and marketing planning for Toyota, Templin will report to Kazuo Ohara, managing officer for Toyota Motor Corp., the automaker said.

Schlicht has been promoted to managing officer and will become executive vice president for sales at Toyota Motor Europe, the automaker said.

PRESS RELEASE: Toyota Announces North American Leadership Changes

Inaba: Will remain on Toyota's North American Executive Committee

Toyota Motor Corporation (TMC) announced various global leadership changes today, including the naming of Shigeki Terashi as president and COO of Toyota Motor North America, Inc. (TMA) effective April 1.

In this new role, Mr. Terashi will be Toyota's chief regional officer for North America, and will chair Toyota's cross-affiliate North American Executive Committee.

Mr. Terashi, who will also retain his current position as president of Toyota Motor Engineering and Manufacturing, North America, Inc. (TEMA), joined Toyota in 1980 in the body engineering design division and began by working on the Camry project. Before being named president of TEMA last year, Mr. Terashi led the Toyota Technical Center (TTC) and oversaw the development and launch of the Venza, Sienna and other key products in North America.

Other North American changes announced today, also effective April 1, include:

• Yoshi Inaba, currently president and COO of TMA, will remain on Toyota's North American Executive Committee to support Mr. Terashi in his new role, but will be moving back to Toyota Motor Sales, USA, Inc. (TMS), to focus mainly on his role as Chairman of TMS.

• Jim Lentz, currently president and COO of TMS, will become president and CEO of TMS. Mr. Lentz is the first American to be named CEO of TMS.

• Massy Tomozoe, previously senior vice president of North America business planning and chief coordinating officer for TMA, will return to Japan to accept a senior management position, which will be announced at a later date.

Under Mr. Terashi's leadership, Toyota's North American Executive Committee will continue to meet monthly. Other members of the Executive Committee include: Yoshi Inaba, Dian Ogilvie, George Borst, Jim Lentz, Kazuhiro Miyauchi, Ray Tanguay and Steve St. Angelo.



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