Discussion on Digitalization and Carbon Neutrality Becomes the Center of Attention (Part Four of Management Series)

In a recent series of discussions, Akio, the President of Toyota, emphasized the importance of digitalization and carbon neutrality as key focus areas for the company. Operating Officer Masanori Kuwata and Executive Fellow Shigeki Terashi echoed these sentiments, presenting two pillars that Toyota should focus on moving forward.

Akio aims to bring Toyota up to the level of world-class digitalization in the next three years, while also focusing on HEVs, which have been proven to greatly reduce CO2 emissions, as a starting point for working towards carbon neutrality. This human-centered approach to carbon neutrality involves reducing CO2 emissions throughout the entire process of making, transporting, using, recycling, and disposing of products.

Toyota should provide a wide range of electrified powertrain solutions, including HEVs, PHEVs, and BEVs. PHEVs, in fact, have lower CO2 emissions than BEVs when considering the entire life cycle. The company can convert TNGA platforms capable of accommodating HEVs to create BEVs as required. Toyota should adopt a strategy that features a mix of BEV, HEV, and PHEV variants within the same model.

Prime Minister Suga's pledge of carbon neutrality means reducing all CO2 emissions to net-zero by 2050. Toyota's approach to carbon neutrality is not just about meeting this target, but about creating a mobility society that offers hope for the future and happiness for all. Akio believes that Toyota should work towards this goal with determination over the next ten years.

The discussions served as a starting point for earnest action in the two areas of digitalization and carbon neutrality. The company has identified several partnerships as crucial for achieving these goals, although specific details about these partnerships have not yet been disclosed. Toyota Times will continue to watch those efforts closely.

Akio also spoke about the importance of mutually beneficial relationships in the automobile industry. Every spring, Toyota hosts discussions between company management and employee representatives to foster these relationships and work together towards a common goal.

Toyota should work to avoid the commoditization of electric vehicles and instead strive to lead the automobile industry in the two pillars of digitalization and carbon neutrality. The company's efforts in these areas will be crucial for creating a sustainable future and ensuring the success of the mobility society.

Discussion on Digitalization and Carbon Neutrality Becomes the Center of Attention (Part Four of Management Series)