Toyota's Head of Tech Outlines Aim Behind Extensive Financial Commitment

Toyota, the renowned automobile manufacturer, recently outlined its all-round electrification strategy at the 2021 Ordinary General Shareholders' Meeting. The meeting, which took place on June 16 and lasted for 1 hour and 49 minutes, marked a significant step in Toyota's commitment to achieving carbon neutrality in the automotive industry.

President Akio Toyoda, who was chairing the meeting, emphasized the company's dedication to providing a variety of electrified vehicle options. Toyota's strategy includes the development of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), battery electric vehicles (BEVs), and even hydrogen-powered engine vehicles.

Toyota Production System (TPS), a management philosophy Toyota has long been known for, is playing a key role in this development. The company is using TPS to organise information flows in wide-ranging development, improving efficiency and making development efforts smaller and more efficient. Digitization is being combined with TPS to further enhance these benefits.

Advanced computer simulations and technologies are being used to compress the basic units of development, allowing Toyota to reduce development lead time for new vehicles. For instance, the development lead time for the "bZ4X", an all-new BEV jointly developed with Subaru, was reduced by 30%. Toyota is targeting a 10% more reduction for future new BEVs' development lead time.

Toyota's Chief Technology Officer, Masahiko Maeda, responded to a shareholder's question about the all-round strategy's effectiveness. He explained that Toyota's full lineup approach is a result of pursuing customer convenience and always responding to customer requests. This approach has enabled Toyota to meet the needs of a full lineup of electrified vehicles, reducing the basic unit of each investment.

Akio also addressed questions about the strategy's affordability, stating that eco-friendly vehicles are only meaningful if they achieve widespread use and contribute to CO2 reductions. Toyota has offered a full range of electrification options in the past to provide "mobility for all," responding to the rapidly changing European market by developing affordable electric vehicles alongside efficient gasoline models to meet diverse customer needs and regional demands.

The strength of TPS continues to play a key role in developing future technology at Toyota. The company is implementing TPS in non-production workplaces and encouraging office positions to practice TPS, as President Toyoda did last year.

In the meeting, Akio decided to respond to only two of the 11 questions himself, compared to more responses in previous years. This decision reflects Toyota's focus on streamlining operations and improving efficiency, principles that are central to TPS.

The Prius, the world's first mass-produced hybrid electric vehicle, was launched by Toyota back in 1997. Since then, Toyota has been at the forefront of environmental technology development, always striving to provide eco-friendly vehicles that are both practical and affordable for the masses. With its all-round electrification strategy, Toyota aims to continue leading the way in sustainable mobility solutions.