From the May 2023 issue of Car and driver.
When Akio Toyoda took over as president of Toyota Motor Corporation in 2009, the company was not in a good place. Yes, it led global auto production with 7.2 million units, ahead of GM’s 6.5 million. But Toyota, reeling from the global recession, had just reported its first financial loss in decades and was in the middle of its unwanted acceleration controversy, which would result in a $1.2 billion fine in the US . Then things got worse. In 2011, the Tōhoku earthquake and tsunami devastated Japan’s east coast, destroying or damaging three of Toyota’s factories and knocking many suppliers offline.
Reflecting on the devastation shortly after, Toyoda said he was “totally packing” all the other challenges he had yet to face. Toyota production stumbled that year, with the company falling to number three. But the following year, production figures were higher again.
Today Toyota outsells the next automaker Volkswagen by approximately 2 million vehicles annually. As of this writing, it is also the second most valuable car company in the world, behind Tesla.
As well as leading Toyota into an earthquake and global financial peril, Toyoda also won over enthusiasts, racing under his alter ego, Morizo, and spearheading performance cars ranging from the Lexus LFA to the new GR Corolla. While we’ll never complain about more performance hatches, some experts fear that Koji Sato will be stuck playing catch-up when it comes to electric vehicles.
While most global manufacturers are betting on battery electric vehicles to prepare for impending zero-emission mandates in markets like California and New York, Toyota offers just one EV on the global market, the bZ4X (Lexus is introducing a model companion, the RZ450e). Instead, Toyota has been taking a more measured approach to electrification, relying on hybrids and plug-in hybrids. It argues that using a 100.0 kWh battery to make six plug-in hybrids or 90 hybrids instead of one EV results in greater carbon dioxide reduction. Toyota still hopes to make cars powered by internal combustion until 2050, although fleet emissions will drop by 90%.
Under Toyoda’s leadership, we saw playful performance offerings like the 2023 Toyota GR Corolla and the 2012 Lexus LFA.
Toyota, under Toyoda’s leadership, has also been investing in hydrogen fuel cell technology. Toyoda even raced a Yaris that used hydrogen combustion. “Carbon neutrality is not about having a single option, but about keeping the options open,” he said. But without government support for hydrogen vehicles in the US, it’s hard to see fuel cells being much of an option here.
The need for an electrification strategy may be part of the reason why Koji Sato has been tapped as Toyoda’s successor. Coming from the chairmanship of Lexus, Sato has experience with electric vehicle planning. The Lexus Electrified initiative promises that by 2030, all Lexus sold in North America, Europe and China will be battery electric.
As Sato steps up, is it too late for Toyota to meet projected EV demand? No way, Brian Finkelmeyer, senior director of new car solutions at Cox Automotive, tells us, “I think Toyota played it perfectly.”
Finkelmeyer says no mainstream manufacturer has proven that electric vehicles are their only business other than Tesla, which operates in the rarified air of small-scale luxury brands. “Toyota is still hedging its bets a little bit, not putting all the chips in one place,” says Finkelmeyer. And it’s not just fuel cells. Finkelmeyer notes that Toyota is the world leader in patents involving solid-state batteries, which have the potential to increase range and reduce charging time. This, he believes, could leave Toyota well positioned for the long term.
What impact will Sato have in changing Toyota’s fortunes? Finkelmeyer says it won’t be dramatic. “My impression of Toyota is one of a fundamental, cultural set of beliefs about how they go to market and who they are,” he says. “They are like the [NBA’s] Golden State Warriors. They’re just going to keep doing what they’re doing.”
Sato’s initial statements seem to back this up. “Cars are made with the passion and efforts of countless people,” Sato said earlier this year at a press conference where he expressed his vision for Toyota. “I want to be a president who remains part of this group, working together to create cars.”
What about Toyoda’s passion for sports cars? “If Morizo is someone who likes to drive cars,” said Sato, “I’m someone who loves to make cars that make drivers smile.” Hopefully, that means the brand’s affordable and fun performance vehicles will continue, with or without exhaust pipes.
Meet Sato
Born in Tokyo in 1969, Koji Sato studied mechanical engineering at university. His interest was always in cars, and he worked part-time at a gas station and later at Fuji Speedway.
Sato joined Toyota as an engineer in 1992. His early work was in suspension development and chassis design, including contributions to the first-generation Prius. He later moved into product planning, where he led the Toyota Camry and Lexus GS team before taking the role of chief engineer at Lexus, where he oversaw the development of the current Lexus LC coupe , still one of his favorite cars. He became president of Lexus in 2020, shortly before also taking on the role of president of Gazoo Racing.
When he’s not working on new car designs, Sato enjoys his favorite classic, the last of the rear-wheel drive Corollas, the AE86.
