When Akio Toyoda became president of Toyota in 2009, the company was in a mess. It made 7.2 million cars worldwide, more than GM’s 6.5 million. On the other hand, Toyota was dealing with a sudden acceleration problem that would cost the company $1.2 billion in fines in the U.S. It had just reported its first loss in decades. The world economic downturn also affected Toyota. Then the situation got worse. When the 2011 Thoku earthquake and tsunami hit Japan’s east coast, they destroyed or damaged three Toyota plants and made other sources useless. Toyoda said that when he looked at the damage soon after, it “totally dwarfed” every other problem he had ever had. Toyota’s production decreased that year, and the company fell to third place. But by the following year, the show was back on top. The bZ4X is the only electric car that Toyota sells outside of Japan. It says it will keep making internal combustion engines until 2050 and will reduce carbon dioxide emissions more by making six plug-in hybrids or 90 hybrids instead of one electric vehicle (EV). Toyota sells about 2 million fewer cars each year than Volkswagen, the second-largest automaker in the world. It is now the world’s second most expensive car company, after Tesla. Toyoda managed Toyota through an earthquake and a global financial crisis. He also competed as Morizo and led the development of high-performance cars like the Lexus LFA and the new GR Corolla, which have won him the respect of car fans. More high-performance hot hatchbacks are always good, but some people in the auto industry worry that Koji Sato may have to play catch-up in the electric vehicle (EV) area. Toyota only has one electric vehicle (EV) on the world market, the bZ4X. Lexus is working on a similar model, the RZ450e, which will be identical to the bZ4X. However, most automakers support battery-electric vehicles in preparation for zero-emissions laws in states like California and New York. Toyota has taken a more cautious approach to electricity by focusing on hybrids and plug-in hybrids. It says that making six plug-in hybrids or 90 hybrids from a 100-kWh battery cuts carbon dioxide emissions more than making just one electric vehicle. Toyota plans to keep making cars with internal combustion engines until 2050, even though it has cut its fleet emissions by 90%. Toyota has been putting money into hydrogen fuel-cell technologies while Toyoda has been in charge. Toyoda raced a Yaris that was driven by the combustion of hydrogen. But fuel cells can only have a bright future in the United States with help from the government. Toyoda’s replacement, Koji Sato, may have been chosen partly because of the need for an electric plan. Sato knows how to plan for EVs because he was the President of Lexus before. The Lexus Electrified project says that by 2030, all Lexus cars sold in North America, Europe, and China will be battery-electric cars. As Sato steps up, is there still time for Toyota to meet the expected EV demand? Brian Finkelmeyer, the general director of new car solutions for Cox Automotive, says no way. I was quite impressed by Toyota’s handling of the matter. Finkelmeyer thinks that, except for Tesla, which plays in the niche luxury brand market, no major automaker has made EVs their only line of business. Finkelmeyer says that Toyota is still hedging its bets and putting only some of its chips in one place. It goes beyond fuel cells as well. Finkelmeyer says that Toyota has the most patents for solid-state batteries, which could give cars a more extended range and reduce the time it takes to charge them. He thinks that Toyota will be in a good situation in the future if they do this. What will Sato’s acts mean for the future of Toyota? Finkelmeyer doesn’t think it will be surprising. As he puts it, “I think Toyota has a fundamental, cultural set of beliefs about how they go to market and exactly who Actually, they are exactly that. My sense is that Toyota is a company whose core values permeate every level of operation. They remind me a lot of the Golden State Warriors from the NBA. They’d rather things keep going as they have. Sato’s first words back this up. At a news conference earlier this year, Sato talked about his goals for Toyota. He said, “The passion and hard work of many people make cars.” I want to be president to stay on that team and help make cars with them. What about how much Toyoda loved fast cars? Making autos that customers are pleased with is rewarding. Hopefully, the company will keep making low-cost, fun-to-drive performance cars, with or without tailpipes.
