The auto industry "needs to reinvent itself," says Toyota Motor Co. President Akio Toyoda, though his company's push into green power won't prevent it from launching a new, "affordable" sports car.
The auto industry is “set to make its biggest transformation in 100 years.” declared the head of Toyota Motor Co., during a meeting with industry leaders, Wednesday.
With global demand for oil rapidly approaching the point where it exceeds production capacity, Akio Toyoda, heir to the giant automaker’s founding family, warned that the industry is “back where we began, 100 years ago,” when the fledgling car business was looking for the most effective form of power.
“It calls for true breakthroughs,” said Toyoda, who recently assumed his post as president of Toyota. “We must reinvent the automobile.”
Speaking to several 100 industry leaders attending the annual Management Briefing Seminars, in Traverse City, Michigan, Toyoda said this reinvention will require a higher degree of cooperation among erstwhile competitors.
Toyota has tried to position itself at the forefront in the switch to greener power, a transformation similar to what pioneers like Henry Ford first faced, when it was unclear whether gasoline, steam or battery power would take the lead. But while petroleum ultimately won out, Toyoda asserted that, in the future, “There (will be) no one solution…but the need for many, because energy solutions that work for Traverse City may not be the best for Shanghai or Sydney or Sao Paolo.
Indeed, the executive doesn’t seem ready to let Toyota drive away from gasoline. He revealed that the automaker “plans to fastr-track” development of what he described as a “fun-to-drive affordable sports car” that it will bring to market “in the next few years.”
Toyoda proudly interrupted his speech to show some video clips taken during his recent stint driving at a 24-hour endurance race at the grueling German Nurburgring race track. The car he shared driving duties in took fourth place in its class.
The Toyota president stressed that racing is a great way to develop not only products but the people who build them, since it requires quick thinking and leaves little room for error. During his comments, Toyoda emphasized the concept of “genchi genbutsu,” which translates into “go and see” – in other words, to check things out from the front lines.
That could prove critical for Toyota, which has seen a sudden shift in its fortunes. For years, the automaker had steadily grown sales and market share. Last year it surged past General Motors to become the world’s largest automaker. But it has seen volume slip sharply, in recent months, particularly in the key American market. And that has contributed to billions in losses.
His “first objective,” said the Japanese executive, “is to put Toyota back on the right track.”
Toyoda said he is confident the company will recover. And so will the U.S. auto market, he stressed, adding to a mixture of laughter and applause, “God Bless America.”