Toyota Motor Corp.’s new Chief Executive Officer Koji Sato unveiled the beginnings of a long-awaited plan to electrify the automaker’s vehicle lineup during his first press conference but stopped short of unveiling concrete steps around how the company will match its EV rivals.
(Bloomberg) — Toyota Motor Corp.’s new Chief Executive Officer Koji Sato unveiled the beginnings of a long-awaited plan to electrify the automaker’s vehicle lineup during his first press conference but stopped short of unveiling concrete steps around how the company will match its EV rivals.
The Japanese automaker said it will release 10 new EV models by 2026 and “strengthen hybrids and plug-in hybrids” to make good on its pledge to become carbon neutral by 2050.
“We must first do what we can and start by electrifying,” Sato said in his first public appearance since becoming CEO and president on April 1.
Read more: Toyota’s Shift to Electric Future Rests on Koji Sato’s Shoulders
Building a dedicated EV production platform from scratch while navigating lingering pandemic measures, supply chain snags and semiconductor shortages is top priority for Toyota as Sato looks to shepherd the Japanese carmaker into a new age of electrification and automation.
The 53-year-old, who previously led Toyota’s luxury brand Lexus and its motorsport division Gazoo Racing, said in February he would take an “EV first” approach, vowing to overhaul battery production and manufacturing platforms by 2026 with Lexus as the plan’s centerpiece. The repositioning, when it’s announced in its entirety, will likely place Toyota in more direct competition with the two biggest players in the global EV arena: Elon Musk’s Tesla Inc. and China’s BYD Co.
As the world’s biggest car manufacturer and Japan’s largest employer, decarbonizing Toyota is paramount for the island nation to slash emissions, phase out fossil fuels and mitigate climate change.
In December 2021, Toyota pledged to sell 3.5 million EVs annually by 2030 however battery EVs accounted for just 16,000 of the 9.5 million cars it sold in the fiscal year ending March 2022. Former CEO Akio Toyoda, who is now Toyota’s chairman, for years defended his stance that the company should continue to offer customers a range of vehicles options, including those powered by hybrid electric or traditional internal combustion engines.
“It’s important that we don’t waver from our multi-pathway strategy,” Vice President Hiroki Nakajima said Friday.
Expectations were high last year when Toyota rolled out its inaugural EV, the bZ4X. That ended in a loss of face, however, when thousands of cars were recalled due to concerns that the tires could fall off because the wheels weren’t bolted on tightly enough.
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