CEO sees EVs as ‘missing piece’ for Toyota
Localization will be an important factor in producing and selling vehicles, he says
How's this for a difficult job: taking over from the founder's grandson, who led the family business to the very top of its industry, and who's still very much in the mix as paradigmchanging disruptors force the company to transform.
Such is the position Koji Sato was thrust into at Toyota Motor Corp. in April, taking over from Akio Toyoda, who became chairman. The Japanese manufacturer is making and selling more cars than ever, and yet battery-electric vehicles are a “missing piece” in its vast portfolio of products, Sato said in one of his first interviews since his promotion to chief executive officer in April.
Sato, 54, addressed this headon during his first news conference after his appointment was announced in late January. His declaration that Toyota needed to have an electric vehicle-first mindset was welcomed by investors eager to see the company take on the likes of Tesla Inc. and BYD Co. But it may have been perceived by some as rocking the boat Toyoda, 67, is one of the industry's loudest proponents for decarbonizing cars gradually, using gas-electric hybrids, and for alternatives including hydrogen fuel cells.
“When we announced the new direction, when we used the phrase battery-EV first, that was seized upon,” Sato said in the interview on the sidelines of the Japan Mobility Show in Tokyo. “But that speech made clear that Toyota had a multipathway approach, and that various powertrains will be used.”
Sato discussed the extent of the change he has witnessed at Toyota over his more than 30year career, how the company is approaching EV development and more during the half-hourlong conversation. What follows are some of the questions and answers from the discussion, which have been edited for length and clarity.
QAkio Toyoda has described this moment as a “full model change” synonymous with when Toyota transitioned the family business from looms to car manufacturing. Would the Toyota of today have been unrecognizable to you when you joined the company in 1992?
AThe stance of making good cars hasn't changed, but the company's purpose has become clearer. Especially since Akio became president, the change has been bigger. His taking on the task of spreading happiness is at the heart of everything that we do. It's very broad but extremely important for us.
Thirty years ago, one single answer was considered the best solution. Now, a single answer is not the best. We're in a period when we need to address many different needs at once. That's why we use the term multipathway. The biggest change that I feel in the
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