Toyota's North American CEO Isn't Exactly Brimming With Enthusiasm for EVs

by Steph Willems

Published: January 17th, 2019

When it comes to electric vehicles, Toyota’s North American CEO seems to be on a different page than the company’s big boss, Akio Toyoda. A different page than Ford and General Motors, too. Maybe it’s because Toyoda has the entire globe in his sights, including many EV-hungry markets, while Jim Lentz can only look around, see low, low gas prices and a niche market dominated by a single player, and feel a rush of meh.

Lentz aired his views on our would-be electric future Wednesday, suggesting it would take draconian measures by the government to pry a healthy slice of Americans away from the gas pump. He’s not too enthused with Tesla, either.

Speaking at the Automotive News World Congress in Detroit, Lentz said the hype surrounding Tesla belies the fact that conditions for EV adoption in the U.S. are terrible, Wards Auto reports.

In Lentz’s mind, nothing short of government regulation could force consumers to step away from sub two-dollar gasoline and nudge the EV take rate up at a reasonable clip. Continued slow growth, led by one manufacturer (Tesla), is what the future holds, he claims.

“There’s not much growth in that industry,” Lentz said, adding that some automakers might be focusing too much on the future and not on the next few years.

toyota s north american ceo isn t exactly brimming with enthusiasm for evs

Indeed, Wards data shows just over 1.2 percent of new vehicles sold in the U.S. last year were battery electric vehicles. While EV sales did rise 103.7 percent in 2018, the bulk of that sales tally was taken up by Tesla. Hybrids, both regular and plug-in, still outsold EVs by more than two to one.

As the creator of the first mass-market hybrid vehicle, Toyota has expressed doubt about the rush to field fully electric vehicles before. It’s still bullish on hybrids, but has, especially in the past year or two, shown a willingness to advance its own plans for EVs. There’s now a plan to introduce 10 such models in various markets by early next decade.

Because Tesla is such a big player in America’s still niche EV market, Lentz doesn’t see it as a major competitor to his business, though he admits it could be hurting Prius sales.

“(Musk) is creating an entirely new segment of vehicles,” he said, adding that 70 percent of Tesla buyers are beholden to the brand, and wouldn’t consider a competitor’s product. “And by that, I don’t view Tesla products as luxury products. Those of us who only separate the world between luxury and non-luxury, we’re missing the point. Tesla has created this new category of a technology-driven product.”

While Toyota’s Prius and Prius Prime plug-in do not overlap with any existing Tesla in terms of price, personal finances can change and the Tesla brand has already overtaken the Prius nameplate in eco snob appeal. Sales of the Prius family fell 19.4 percent in 2018.

[Image: Toyota]

#ElectricVehicles #EVs #Industry #JimLentz #ProductPlanning #Toyota #ToyotaPrius

Steph Willems

More by Steph Willems

Comments

Join the conversation

2 of 59 comments

Kendahl on Jan 17, 2019

I used to say that it wouldn't bother me if the Ferrari I can't afford got 40, 50 or 80 miles per gallon as long as it still could do 0-60 in less than 4 seconds and topped out above 180 mph. I feel the same way about pure electric cars. They have the acceleration and top speed but their average speed sucks due to the time they must spend recharging on trips that exceed their range.

Like Reply
Inside Looking Out on Jan 18, 2019

I have insider information that Toyota is working on the car with a small nuclear reactor (like one you saw in "Martian"). You charge it once during manufacturing. So it is superior to any ICE or BEV vehicle. Almost zero maintenance and no need to refuel or charge. You can also use it as the energy source during disaster.

Like Reply

Recent Comments

Whynotaztec Like any other lease offer it makes sense to compare it to a purchase and see where you end up. The math isn’t all that hard and sometimes a lease can make sense, sometimes it can’t. the tough part with EVs now is where is the residual or trade in value going to be in 3 years?
Rick T. "If your driving conditions include near-freezing temps for a few months of the year, seek out a set of all-seasons. But if sunshine is frequent and the spectre of 60F weather strikes fear into the hearts of your neighbourhood, all-seasons could be a great choice." So all-seasons it is, apparently!
1995 SC Should anyone here get a wild hair and buy this I have the 500 dollar tool you need to bleed the rear brakes if you have to crack open the ABS. Given the state you will. I love these cars (obviously) but trust me, as an owner you will be miles ahead to shell out for one that was maintained. But properly sorted these things will devour highway miles and that 4.6 will run forever and should be way less of a diva than my blown 3.8 equipped one. (and forget the NA 3.8...140HP was no match for this car).As an aside, if you drive this you will instantly realize how ergonomically bad modern cars are.These wheels look like the 17's you could get on a Fox Body Cobra R. I've always had it in the back of my mind to get a set in the right bolt pattern so I could upgrade the brakes but I just don't want to mess up the ride. If that was too much to read, from someone intamately familiar with MN-12's, skip this one. The ground effects alone make it worth a pass. They are not esecially easy to work on either.
Macca This one definitely brings back memories - my dad was a Ford-guy through the '80s and into the '90s, and my family had two MN12 vehicles, a '93 Thunderbird LX (maroon over gray) purchased for my mom around 1995 and an '89 Cougar LS (white over red velour, digital dash) for my brother's second car acquired a year or so later. The Essex V6's 140 hp was wholly inadequate for the ~3,600 lb car, but the look of the T-Bird seemed fairly exotic at the time in a small Midwest town. This was of course pre-modern internet days and we had no idea of the Essex head gasket woes held in store for both cars.The first to grenade was my bro's Cougar, circa 1997. My dad found a crate 3.8L and a local mechanic replaced it - though the new engine never felt quite right (rough idle). I remember expecting something miraculous from the new engine and then realizing that it was substandard even when new. Shortly thereafter my dad replaced the Thunderbird for my mom and took the Cougar for a new highway commute, giving my brother the Thunderbird. Not long after, the T-Bird's 3.8L V6 also suffered from head gasket failure which spelled its demise again under my brother's ownership. The stately Cougar was sold to a family member and it suffered the same head gasket fate with about 60,000 miles on the new engine.Combine this with multiple first-gen Taurus transmission issues and a lemon '86 Aerostar and my dad's brand loyalty came to an end in the late '90s with his purchase of a fourth-gen Maxima. I saw a mid-90s Thunderbird the other day for the first time in ages and it's still a fairly handsome design. Shame the mechanicals were such a letdown.
FreedMike It's a little rough...😄