Art of Lean
Back to Reference
Product Development

Takeshi Uchiyamada

Toyota engineer who led the development of the first-generation Prius as chief engineer (1994-1997), pioneering the obeya (big room) method to manage the unprecedented cross-functional challenge of hybrid technology. Later served as Toyota Chairman (2013-2023). Born 1946.

Japanese

内山田竹志

uchiyamada takeshi

chief engineer of the Prius; Toyota Chairman

Also known as

Father of the Prius, Mr. Prius

Biography

Takeshi Uchiyamada (内山田竹志, born August 17, 1946) is a Toyota engineer and executive who led the development of the first-generation Prius — the world’s first mass-produced hybrid vehicle — as chief engineer (shusa). He later rose to become Chairman of the Board of Toyota Motor Corporation (2013–2023).

Uchiyamada graduated from Nagoya University with a degree in applied physics in March 1969 and joined Toyota the following month. He spent 25 years in engineering roles, primarily in body and chassis engineering research, before being appointed to lead the project that would define his career and reshape the automotive industry.

The G21 Project and the Prius

An Unlikely Chief Engineer

In 1993, Toyota launched the G21 project (“Global 21st century”) — an internal research initiative to define what a next-generation vehicle should be. In January 1994, Uchiyamada was appointed Project General Manager of Vehicle Development Center 2 and leader of G21.

Uchiyamada was an unusual choice. His background was in applied physics and body/chassis research — not the powertrain engineering that would be central to a hybrid vehicle. He later acknowledged that no single person at Toyota, including himself, had the expertise to develop hybrid technology. This apparent weakness became the catalyst for his most important organizational innovation.

From Research Project to Production Vehicle

The G21 project began as a study of future vehicle concepts, not a specific vehicle program. The pivotal moment came in late 1994 when Executive Vice President Akihiro Wada directed the team to pursue hybrid technology and doubled the fuel efficiency improvement target from 1.5x to 2x over conventional engines. What had been a concept study became an aggressive production program.

The technical challenges were immense. Toyota had never mass-produced a hybrid powertrain. The core innovation — the Toyota Hybrid System (THS) — used a planetary gear power-split device to integrate an electric motor, generator, and gasoline engine into a seamless drivetrain. This required breakthroughs in battery technology, power electronics, control software, and manufacturing processes, all developed simultaneously.

In autumn 1995, the Prius concept was shown at the Tokyo Motor Show. In January 1996, Uchiyamada formally became Chief Engineer. By March 1997, the Toyota Hybrid System was completed. The first-generation Prius launched in Japan in December 1997 — approximately two years from the start of official production development, an extraordinarily compressed timeline for a vehicle built on entirely new technology.

The Obeya Innovation

Uchiyamada’s most enduring contribution to Toyota’s development system was not the Prius itself but the management method he created to build it.

Because no single functional department owned hybrid technology — it cut across powertrain, electrical, body, chassis, manufacturing, and entirely new domains like battery and power electronics — Uchiyamada could not rely on the traditional chief engineer practice of walking the floor and engaging with each function individually. The problem was too cross-cutting and the timeline too aggressive.

His solution was the obeya (大部屋, “big room”). Uchiyamada established a dedicated room where all required technical experts gathered every two to three days. The walls displayed the project schedule, current status, open problems, and key decisions. All relevant information was visible to everyone. Problems that crossed functional boundaries — which was nearly every problem on the Prius — were resolved face-to-face in real time rather than through the slower channels of reports and separate meetings.

The obeya worked because it concentrated both information and decision-making authority in one place. Uchiyamada used it not as a status-reporting mechanism but as an active problem-solving environment where cross-functional decisions were made on the spot.

After the Prius, the obeya method spread throughout Toyota — to new plant launches, major quality campaigns, supply chain recovery efforts, and eventually the IMV global platform program. It became a standard element of Toyota’s development toolkit, extending the chief engineer system’s reach into a method that any complex program could adopt.

Later Career at Toyota

Following the Prius, Uchiyamada moved into senior executive leadership:

  • June 1998: Appointed to the Board of Directors
  • June 2003: Senior Managing Director, Chief Officer of Vehicle Engineering Group
  • June 2005: Executive Vice President
  • June 2012: Vice Chairman
  • June 2013: Chairman of the Board of Directors

As Chairman (2013–2023), Uchiyamada served as the non-executive head of Toyota’s board during a period of major transformation — including the launch of TNGA, the pivot toward electrification, and the organizational restructuring under CEO Akio Toyoda.

In April 2023, Uchiyamada stepped down as Chairman when Akio Toyoda transitioned from CEO to Chairman and Koji Sato became the new CEO. Uchiyamada was appointed Executive Fellow, and in June 2025 became Senior Advisor.

Honors

  • Medal with Blue Ribbon, Japan (April 2015)
  • Grand Cordon of the Order of the Rising Sun (November 2020) — one of Japan’s highest civilian honors

Legacy

The Prius and Hybrid Technology

The Toyota Prius became the world’s best-selling hybrid vehicle and established Toyota’s leadership in electrified powertrains. Cumulative Prius sales exceeded 5 million units. The Toyota Hybrid System that Uchiyamada’s team developed became the foundation for Toyota’s entire hybrid lineup — eventually extending to nearly every model in the Toyota and Lexus range. Uchiyamada earned the nickname “Father of the Prius” for this achievement.

The Obeya as a Development Method

While the Prius was a single vehicle program, the obeya method Uchiyamada created for it became a permanent addition to Toyota’s management system. The obeya demonstrated that the chief engineer’s traditional practice of integrating through personal engagement could be amplified and structured through a dedicated physical space and visual management — making the chief engineer system more effective for programs of unprecedented complexity.

An Unlikely Chief Engineer Who Innovated the System

Uchiyamada’s story illustrates a deeper truth about the shusa system: the role demands not just technical depth but the ability to create the conditions for others to solve problems that no single expert can solve alone. His applied physics background, far from being a limitation, forced him to innovate organizationally — creating a method that extended the chief engineer system’s reach beyond what any individual’s personal technical knowledge could achieve.

At the 2023 shareholders’ meeting, reflecting on 54 years at Toyota, Uchiyamada said: “If I were to sum up my 54 years at Toyota in one word, it would be ‘gratitude.’”