Toyota CEO Akio Toyoda on why he isn't all-in on EVs — and what made him do a 'happy dance'

LAS VEGAS — Toyota Motor CEO Akio Toyoda past week simply stated what helium would similar his bequest to be: "I emotion cars."

Just however the 66-year-old racer, car enthusiast and institution scion volition beryllium remembered regarding his attack to all-electric vehicles compared to gas-powered show cars, similar the Supra, oregon hybrids, like the once-groundbreaking Prius, volition play retired successful the years to come.

Toyota, the world's largest automaker, plans to put $70 cardinal successful electrified vehicles implicit the adjacent 9 years. Half of that volition beryllium for all-electric artillery ones. While it's a important concern successful EVs, it's smaller than immoderate competitors' plans, and not arsenic overmuch arsenic immoderate would similar fixed Toyota's planetary footprint.

Despite disapproval from immoderate investors and biology groups, Toyoda this past week doubled down connected his strategy to proceed investing successful a scope of electrified vehicles arsenic opposed to competitors specified arsenic Volkswagen and General Motors, which person said they are going all-in connected all-electric vehicles.

The plans could arguably cement Toyoda's "I emotion cars" bequest oregon tarnish it, depending connected however rapidly drivers follow electrical vehicles.

"For me, playing to triumph besides means doing things differently. Doing things that others whitethorn question, but that we judge volition enactment america successful the winner's ellipse the longest," helium said Wednesday during Toyota's yearly trader gathering successful Las Vegas, which, by the way, was called "Playing to Win."

Toyoda, who described Toyota arsenic a ample section store, said the company's extremity "remains the same, pleasing the widest imaginable scope of customers with the widest imaginable scope of powertrains." Those powertrains volition see hybrids and plug-in hybrids similar the Prius, hydrogen substance compartment vehicles similar the Mirai and 15 all-electric artillery models by 2025.

Aside from the EV plans, Toyoda discussed respective different aspects of the company's concern past week during the trader gathering and a tiny roundtable with U.S. media.

Toyoda reiterated that helium does not judge all-electric vehicles volition beryllium adopted arsenic rapidly arsenic argumentation regulators and competitors think, owed to a assortment of reasons. He cited deficiency of infrastructure, pricing and however customers' choices alteration portion to portion arsenic examples of imaginable roadblocks.

He believes it volition beryllium "difficult" to fulfill caller regulations that telephone for banning accepted vehicles with interior combustion engines by 2035, similar California and New York person said they volition adopt.

"Just similar the escaped autonomous cars that we are each expected to beryllium driving by now, EVs are conscionable going to instrumentality longer to go mainstream than media would similar america to believe," Toyoda said successful a signaling of the remarks to dealers shown to reporters. "In the meantime, you person galore options for customers."

Toyoda besides believes determination volition beryllium "tremendous shortages" of lithium and artillery people nickel successful the adjacent 5 to 10 years, starring to accumulation and proviso concatenation problems.

Toyota's extremity is c neutrality by 2050, and not conscionable done all-electric vehicles. Some person questioned the biology interaction of EVs erstwhile factoring successful earthy worldly mining and wide conveyance production.

Since the Prius launched successful 1997, Toyota says it has sold much than 20 cardinal electrified vehicles worldwide. The institution says those income person avoided 160 cardinal tons of CO2 emissions, which is the equivalent to the interaction of 5.5 cardinal all-electric artillery vehicles.

"Toyota tin nutrient 8 40-mile plug-in hybrids for each 1 320-mile artillery electrical conveyance and prevention up to 8 times the c emitted into the atmosphere," according to prepared remarks for Toyoda provided to media.

Toyota's hesitancy to motorboat all-electric vehicles has been criticized by biology groups specified arsenic the Sierra Club and Greenpeace, which person the Japanese automaker astatine the bottommost of auto-industry decarbonization rankings the past 2 years.

Toyota has nary plans to overhaul its franchised dealership network arsenic it invests successful electrified vehicles, similar immoderate competitors person announced.

"I cognize you are anxious astir the future. I cognize you are disquieted astir however this concern volition change. While I can't foretell the future, I tin committedness you this: You, me, us, this business, this franchised exemplary is not going anywhere. It's staying conscionable arsenic it is," helium told dealers to resounding applause.

The franchised trader exemplary has been nether unit aft Tesla and newer EV startups began selling straight to consumers than alternatively done accepted dealers.

GM has offered buyouts to Buick and Cadillac dealers that don't privation to put successful EVs, portion Ford past period announced dealers that privation to merchantability EVs must go certified nether 1 of 2 programs — with investments of $500,000 oregon $1.2 million. 

As portion of lighthearted and comedic comments to dealers, Toyoda said helium danced erstwhile the automaker outsold GM past twelvemonth for the archetypal clip ever successful the U.S.

Despite Toyota executives saying the accomplishment wasn't sustainable — GM led done the archetypal fractional of this twelvemonth — Toyoda inactive felt it was origin for celebration.

"At Toyota, we similar to support our caput down and not speech astir our success," Toyoda said earlier reenacting the creation connected stage. "But erstwhile I heard you became No. 1 successful the U.S. past year, I really did a small blessed creation successful my office."