Toyota Misses EV Goals
【Summary】Toyota is falling behind its own EV targets, with only 25,000 EVs sold last year and 53,587 sold in the first half of 2023, accounting for less than 1% of its total sales. The company aims to sell 600,000 EVs by 2025, 1.5 million by 2026, and 3.5 million by 2030, surpassing Tesla's sales. Toyota plans to increase production of its battery-powered vehicles in the coming years.
Good morning! It's Friday, September 22, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Toyota Aims to Increase EV Output Dramatically
Toyota has been relatively slow in the electric vehicle market compared to its competitors. However, the Japanese automaker has set ambitious targets to catch up. According to a report from Automotive News, Toyota plans to build more than 600,000 EVs by 2025, 1.5 million EVs by 2026, and 3.5 million by 2030. If successful, this would surpass Tesla's EV sales and make electric models account for a third of Toyota's annual sales by the end of the decade.
Despite these goals, Toyota's current EV sales are far behind. In 2022, the company sold fewer than 25,000 EVs worldwide. Toyota aims to increase EV production to about 150,000 vehicles in 2023 and gradually increase it further to the 190,000-vehicle range next year. In the first half of 2023, Toyota sold 53,587 fully electric models, which accounted for less than one percent of the company's total car sales during that period.
Toyota plans to step up production of its battery-powered vehicles in the coming years and has teased several EV concept cars that may hit the market, including a modern-day FJ Cruiser. By doing so, Toyota hopes to dispel the perception that it isn't serious about electric cars.
2nd Gear: Final Talks Between Big Three Automakers and Union
The United Auto Workers union initiated strike action at Ford, General Motors, and Stellantis plants last week. Now, the big three automakers are making another final attempt to reach a deal with the union to prevent an escalation of the industrial action. Negotiations took place yesterday, with hopes of finding middle ground before the UAW's Friday noon deadline for an expanded strike.
An expanded strike could include plants producing popular models such as the Ford F-150, Chevrolet Silverado, and Ram pickup trucks. However, leaked messages from union insiders have caused some tension. UAW communications director Jonah Furman expressed a desire for the ongoing strike action to damage the companies' reputations and keep them wounded for months. The automakers interpreted these messages as a lack of good faith bargaining from the union, suggesting that the UAW intended to cause long-term disruption.
3rd Gear: European Union Demands Carbon Neutrality for E-Fuels
As the world transitions to more sustainable transport options, different sides are vying for supremacy. While battery power currently holds the lead, some companies are exploring hydrogen and sustainable e-fuels as alternatives to extend the life of gas-powered cars. The European Union is now examining the use of e-fuels and their role in the bloc.
In a draft document, the European Union has demanded that cars running on e-fuels must be 100% carbon neutral to be offered for sale after the upcoming ban on gas-powered models in 2035. The proposal sets strict conditions for e-fuel cars, requiring them to run on fully CO2 neutral fuels. To be considered carbon-neutral, e-fuels must be produced in a way that utilizes captured atmospheric carbon, offsetting the CO2 released when burned in a car engine.
4th Gear: U.S. Investigates Ford EcoSport Models
Following a series of recalls, Ford is now facing multiple probes. The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into an oil pump issue that could affect around 240,000 EcoSport models built between 2018 and 2021. The probe was prompted by complaints alleging potential oil pump failure, resulting in a loss of motive power while the vehicle is in motion.
This investigation adds to the NHTSA's ongoing probe into 1.2 million Focus models and a separate investigation into the Explorer SUV, which affects over 700,000 units.
That's all for today's Morning Shift. Have a great day!
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