Toyoda chided for querying combustion car ban

SOME Toyota Motor shareholders have criticised company president Akio Toyoda for questioning Japan’s plans to ban conventional cars only days after the firm said it was reviewing its climate lobbying and aimed for carbon neutrality by 2050.

The five investors, who collectively have about $500 billion (about R7 trillion) in assets under management, said the carmaker risks falling behind competitors that are rolling out electric vehicles while giving cover for other companies seeking to avoid big changes to meet climate goals.

Japan’s Toyota signalled a shift in its climate change stance last month, when it said it would review its lobbying and be more transparent on what steps it was taking as it responded to increased activist and investor pressure.

Three days later, though, in his capacity as head of the Japanese automobile Manufacturers Association, Toyoda questioned the country’s decision to ban new internal combustion engined vehicles by 2035 in its quest for carbon neutrality.

“What Japan needs to do now is to expand its options for technology. I think regulations and legislations should follow after,” Toyoda said.

“Policy that bans gasoline-powered or diesel cars from the very beginning would limit such options, and could also cause Japan to lose its strengths,” he said.

Investors who had welcomed the earlier Toyota statement on reviewing its lobbying said they were worried that Toyoda may not be on board with the plans.

A Toyota spokesperson said the company could not immediately comment on the investors’ criticism but said that the company would be addressing climate issues later in the week when it announced its earnings.