The frown on Akio Toyoda's face is the latest blow to the Bank of Japan's effort to revive the economy.
It's been all broad smiles at Toyota for the three years BOJ Gov. Haruhiko Kuroda has been at the wheel. His monetary maneuvers shaved 30 percent off the yen's value, putting tens of billions of profits into CEO Toyoda's hands. They even made Sony, which hasn't had a sexy product in decades, seem serviceable. But Toyota's warning of a 40 percent plunge in operating profit from a year ago dramatizes the BOJ's dilemma.
While Toyota, arguably Japan's premier company, is still profitable, the rate of deceleration is striking. Along with deepening deflation, negligible credit growth and stagnant wages, Toyota's downshift proves Kuroda has lost all traction. And after 1,150 days at the controls, it's time to ask if the BOJ needs a new driver.