TOKYO (AFP) - Toyota Motor will promote Akio Toyoda, a grandson of its founder, to president in June with a mission to rescue the auto giant from its biggest ever crisis, a newspaper said Friday.

Toyoda, currently an executive vice president, will replace Katsuaki Watanabe, who is expected to become a vice chairman, the Nikkei business daily said without naming its sources.

Chairman Fujio Cho will likely retain his post, the report said.

The boardroom shake-up is likely to be endorsed by Toyota's top executives as early as Monday, with official approval expected by the board in June, the daily said.

A company spokeswoman declined to confirm the report, only saying: "Nothing has been decided."

Toyoda, who has long been groomed for the top job, would take over at a crucial time.

The company, famed for its efficient production methods, expects its first-ever operating loss this year due to the economic crisis.

The current chairman and president both come from outside the founding family but the Toyodas still wield influence, despite owning less than a one percent stake.

Toyoda, 52, is the grandson of Kiichiro Toyoda - who founded the automaker in 1937 - and the son of former president Shoichiro Toyoda.

He would be the first member of the founding family in 14 years to become the company's president.

Toyoda became a board member in 2000 and was made an executive vice president in 2005, taking charge of Japanese sales and overseas operations.

The new management team will be under pressure to quickly overhaul the company, including restructuring its production network, cutting costs and introducing new models, the Nikkei said.

Toyota has announced plans to cut jobs and idle plants to cope with a slump in sales - in marked contrast to before the economic crisis when it was struggling to keep up with demand for its fuel-efficient vehicles.