Toyota/Lexus to the rest of the world : We Done Told You!
We’re facing some rather strange headwinds in the automotive realm. What was a forgone conclusion: ‘‘Mass adoption of EV vehicles’’
Combination of idiotic prices, real world lack-o-range, our consistently broken charging infrastructure, slow charging speeds for said infastructure, wonky onboard electronics and the general LACK of reliability…
But, that’s not to say, consumers are back to their old buying habits. If anything, they are demanding higher efficiency vehicles without sacrificing space, comfort, power and driving range. That leads the industry going back to what they should’ve kept developing in the first place…hybrid powertrains.
Why did the automotive industry veer away so quickly and decisively on Hybrids? Simple. Economics.
Hybrid vehicles, if you’re not aware already, combine a traditional ICE powertrain with an electric powertrain. Combining the mechanical complexity of a modern day ICE engine to an EV powertrain AND have them work together seamlessly…takes effort. Any additional effort for an automaker equates adds to their bottom line.
In other words:
The more complicated the vehicle, the more expensive it is to produce. Which negates any potential profit.
But senior leaders over at ToMoCo, didn’t look at just their bottom line. They knew the pitfalls of modern EV design, sustainability and practicality. They knew it because they’re actual gear heads. Heck, look up Akio Toyoda and tell me he is not a gearhead!
So the prophetic senior people over at ToMoCo attempted to sway concerns on the continued Hybrid development instead of EV development with quotes such as:
But investors, lobbyists and a slew of others relentlessly beat them down to submission. So the messaging didn’t really stick. Those same forces, pushed Akio Toyoda, whose family started Toyota, from the CEO’s seat in January 2023.
If I was Akio Toyoda, I would’ve jumped in front of the nearest camera do the following:
But alas, he did not.
Toyota’s senior leadership saw that something needed to be done to assuage Wall Street and the lobbyists, so they began a….errrr….let’s say half hearted EV development effort. What they didn’t do was stop Hybrid development.
Unlike what GM, Volkswagen, Audi, Mercedes, Ford…literally EVERY one of their competitors did, which was immediately announce the halting of development of ICE powertrains as fast as humanly possible. You might ask why so freakin’ quickly?
It’s simple, think of the thousands of tiny, minute and yet precisely machined components that make a traditional gas engine. There is a price tag attached to each and every one of them.
So what those other automakers realized was that if they halt ICE development immediately, they can stop BUYING and/or paying for those thousands of individual components.