Toyota has never seemed all that excited about the shift to electrification, but the automaker is now openly stating that it will withhold future EV investments “until the very last moment” as it sees profits slide. The automaker expects its volume to recover in the coming months, but its full-year production totals will still fall way short of 2023’s delivery numbers.
Toyota Vice President Yoichi Miyazaki said the company would “hold off on HEV, PHEV, BEV, or FCEV” investments as it watches how demand plays out in the market. Its significant investments have so far been a drag on profits, though it is still working toward new EV technologies, such as solid-state batteries and alternate battery chemistries. Toyota also absorbed Toyota Battery, making it a wholly-owned subsidiary. The move will help it develop and build new battery types at scale.
Miyazaki said Toyota wants to accomplish two primary goals. The first is “to increase how quickly we can respond to environmental changes in an age in which it is hard to predict the future.” The second is “to improve the fundamental capabilities that will enable us to carry on into the future.”
Toyota’s slow march to electrification drew criticism earlier on, as other companies announced multi-billion-dollar investments while it tiptoed around developing the bZ4X with Subaru. That approach now looks smart, as many of those automakers have pulled back investment dollars as shaky demand growth has made everyone nervous.
[Images: Toyota]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
Source: The Truth About Cars
