Toyota led on clear automobiles. Now critics say it really works to delay them

By Hiroko Tabuchi
The Toyota Prius hybrid was a milestone within the historical past of unpolluted automobiles, attracting hundreds of thousands of patrons worldwide who may do their half for the atmosphere whereas saving cash on gasoline.
But in latest months, Toyota, one of many world’s largest automakers, has quietly turn into the business’s strongest voice opposing an all-out transition to electrical automobiles — which proponents say is important to combating local weather change.
Last month, Chris Reynolds, a senior govt who oversees authorities affairs for the corporate, traveled to Washington for closed-door conferences with congressional workers members and outlined Toyota’s opposition to an aggressive transition to all-electric automobiles. He argued that gas-electric hybrids such because the Prius and hydrogen-powered automobiles ought to play an even bigger position, in keeping with 4 individuals aware of the talks.
Behind that place is a enterprise quandary: Even as different automakers have embraced electrical automobiles, Toyota guess its future on the event of hydrogen gasoline cells — a costlier know-how that has fallen far behind electrical batteries — with higher use of hybrids within the close to time period. That means a speedy shift from gasoline to electrical on the roads might be devastating for the corporate’s market share and backside line.
The latest push in Washington follows Toyota’s worldwide efforts — in markets together with the United States, the United Kingdom, the European Union and Australia — to oppose stricter car-emissions requirements or combat electrical automobile mandates. For instance, executives at Toyota’s Indian subsidiary publicly criticized India’s goal for 100% electrical automobile gross sales by 2030, saying it was not sensible.
Together with different automakers, Toyota additionally sided with the Trump administration in a battle with California over the Clean Air Act and sued Mexico over fuel-efficiency guidelines. In Japan, Toyota officers argued in opposition to carbon taxes.
“Toyota has gone from a leading position to an industry laggard” in clean-car coverage whilst different automakers push forward with formidable electrical automobile plans, mentioned Danny Magill, an analyst at InfluenceMap, a London-based suppose tank that tracks company local weather lobbying. InfluenceMap provides Toyota a “D-” grade, the worst amongst automakers, saying it exerts coverage affect to undermine public local weather targets.
In statements, Toyota mentioned it was by no means against electrical automobiles. “We agree and embrace the fact that all-electric vehicles are the future,” mentioned Eric Booth, a Toyota spokesperson. But Toyota thinks that “too little attention is being paid to what happens between today, when 98% of the cars and trucks sold are powered at least in part by gasoline, and that fully electrified future,” he mentioned.
Until then, Booth mentioned, it is smart for Toyota to lean on its present hybrid and plug-in hybrid automobiles to scale back emissions. Hydrogen gasoline cell know-how must also play a task. And any effectivity requirements ought to “be informed by what technology can realistically deliver and help keep vehicles affordable,” the corporate mentioned in a press release.
Last yr within the United States, a bunch of main automakers reached a compromise on tailpipe-emissions requirements with California, which sought to impose more durable emissions requirements than the Trump administration wished. Toyota didn’t be a part of that compromise settlement.
More lately, the Alliance for Automotive Innovation, an business foyer group, argued in closed-door conferences in Washington that the California compromise, which is predicted to be a mannequin for brand new requirements from the Biden administration, is in actual fact not possible for all of its members, in keeping with two of the individuals with direct information of the discussions. The chairman of the alliance is Reynolds, the Toyota govt.
The Biden administration needs to make use of more durable emissions guidelines to quickly improve gross sales of electrical automobiles. Congress may additionally approve billions of {dollars} for development of charging stations in addition to tax incentives for electrical automobiles and vans.
Don Stewart, a spokesman for the alliance, mentioned he was unaware that any of the group’s representatives had mentioned the California compromise was not possible. The alliance helps requirements roughly halfway between what the Trump and Obama administrations had adopted, he mentioned.
Toyota’s technique is that, in the long term, hydrogen gasoline cell automobiles can nonetheless be a serious know-how for passenger automobiles, with gas-electric hybrids serving to scale back emissions within the brief time period. However, hydrogen automobiles stay costlier, and hydrogen as a gasoline for passenger automobiles isn’t extensively accessible. Various research have proven, in the meantime, that hybrids obtain extra modest near-term emissions reductions.
Toyota, a serious sponsor of the Tokyo Olympics, has used that platform to advertise its message of sustainability. Hydrogen fueled the Olympic torch for a part of its journey, and Toyota’s fleet of smooth Mirai hydrogen gasoline cell automobiles have been whisking Olympic dignitaries round Tokyo.
Toyota is selling itself as strongly backing a inexperienced transition, however in impact, it’s opposing efforts that others say are essential to a swift inexperienced transition.
(Amid mounting COVID-19 considerations, Toyota canceled its Olympic-related promoting in Japan.)
Toyota’s lobbying additionally comes because the Japanese automaker’s political donations have come underneath scrutiny. Last month, the nonprofit watchdog Citizens for Responsibility and Ethics tallied marketing campaign contributions and located that Toyota was the most important company donor by far this yr to Republicans in Congress who disputed the results of the 2020 presidential election.
According to a New York Times evaluation, at the very least 22 of these lawmakers have additionally denied the scientific consensus on human-caused local weather change.
Toyota initially defended its contributions, then modified course, saying it could halt its donations.
Booth, the Toyota spokesperson, mentioned Toyota believes local weather change is actual. “The opinions expressed by members of Congress are just that — their opinions and theirs to be accountable for,” he mentioned. He additionally famous that politicians who maintain such beliefs have acquired contributions from different automakers as properly.
The findings shocked some longtime auto business specialists. Toyota has usually saved a low political profile however has lately turn into a serious donor and lobbying power in Washington.
“They really were on the right path, especially with the introduction of the Prius, and they still talk about climate change,” mentioned Margo Oge, former director of the Office of Transportation Air Quality on the Environmental Protection Agency. “But they’re fighting policies for electric vehicles across the globe, and that’s hurting the effort of policymakers in setting any ambitious measures.”
On paper, Toyota’s method to zero-emissions automobiles, the hydrogen gasoline cell, is a dream: Unlike battery-powered electrical automobiles, these automobiles carry hydrogen tanks and gasoline cells that flip the hydrogen into electrical energy. They refuel and speed up rapidly, and might journey for a number of hundred miles on a tank, emitting solely water vapor. And hydrogen, theoretically, is ample.
But a excessive sticker worth, in addition to lack of refueling infrastructure, has hampered the expansion of a hydrogen financial system, at the very least for passenger automobiles.
Toyota has offered solely about 11,000 of its Mirai fuel-cell automobiles since introducing the automobile in 2014. Honda, one other hydrogen pioneer, mentioned lately it was killing its hydrogen mannequin. Many analysts say that hydrogen know-how is extra fitted to long-haul vans or to be used in energy-intensive industries akin to metal manufacturing.
“I think hydrogen holds promise, but it’s at least a decade behind batteries right now,” mentioned David Friedman, vice chairman of advocacy at Consumer Reports and former performing administrator of the National Highway Traffic Safety Administration. “And Toyota is saying, ‘No, we’ve got to hold off, we’ve got to wait till they’re ready with hydrogen.’ But the climate can’t wait.”
Toyota additionally argues that hybrid know-how — that’s, automobiles powered by an inner combustion engine and an electrical motor — is a better first step towards totally electrical automobiles and will assist get extra individuals into cleaner automobiles extra rapidly till hydrogen turns into widespread. Toyota has made main investments in hybrid know-how as properly. The firm has outlined a imaginative and prescient for a product lineup dominated by hybrids by means of 2050 — far later than when many analysts say new automobiles have to be zero-emission.
Toyota presently doesn’t promote any electrical automobiles in main markets exterior China, however it mentioned in April that it plans to promote 15 battery-electric fashions globally by 2025, a part of a wider lineup of 70 battery-electric, hybrid and hydrogen gasoline cell automobiles to supply “diverse choices” to patrons.
The automaker, based mostly in Toyota City, Japan, has begun lagging behind in gasoline effectivity throughout its complete fleet, because it has pushed gross sales of bigger vans and sports-utility automobiles, which deliver greater revenue margins. EPA figures present that Toyota has made comparatively little progress on gasoline financial system over the previous 5 years, going from an business chief to a part of the underside tier, together with General Motors and Ford.
“Toyota followed GM and other American automakers to produce gas-guzzling pickups and SUVs in large numbers,” mentioned Dan Becker, director of the Safe Climate Transport Campaign on the Center for Biological Diversity.
Jeffrey Liker, professor emeritus of commercial and operations engineering on the University of Michigan and writer of “The Toyota Way,” mentioned there have been different elements slowing Toyota’s push. A famously cautious firm, Toyota has researched solid-state batteries, that are safer than the extensively used lithium-ion know-how, however readying that know-how has taken longer than they anticipated, he mentioned. Toyota has additionally spoken about not wanting to put off staff or bankrupt suppliers in a speedy transition to electrics.
“Toyota’s view is also that countries are jumping in with the idea of the electric vehicle endgame without a real plan, and it’s more political showmanship than sound planning,” Liker mentioned.
There are a number of elements that might finally power Toyota’s hand. For one, China, an vital marketplace for Toyota, has moved aggressively to require automakers there to make electrical automobiles. That has spurred Toyota to start out producing electrical automobiles underneath a three way partnership.
Mary Nichols, who negotiated with Toyota as the previous chairwoman of the California Air Resources Board, the state’s clean-air regulator, mentioned she had been shocked by Toyota over the previous few years. “I think they, over the years, have produced really good technology, and that they’ve been pioneers,” she mentioned. “But at this moment, they’ve definitely been caught flat-footed.”