Founder's grandson to run Toyota

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Japanese carmaker Toyota says it has picked the grandson of the company's founder to be its new president.

Akio Toyoda, 52, who is currently executive vice president, will replace 66-year-old Katsuaki Watanabe in June.

The reshuffle comes as Toyota and its rivals around the world face a steep slump in sales as many of their customers' countries enter recession.

Toyota has warned that it expects to report its first annual operating loss in the financial year ending in March.

The carmaker said that sales fell 4% to 8,972,000 vehicles in 2008.

In Toyota's biggest market, the US, sales fell by 16%, but that was still better than the 23% fall suffered by rival General Motors.

The management changes boosted Toyota's share price. It rose 2.3% to close at 3,100 yen.

It will be the first time that a member of the Toyoda family has headed the company for 14 years.