Summary
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– Car Dealership Guy on Twitter praised Toyota for their hybrids-first strategy
– Toyota’s decision to focus on hybrids and hydrogen instead of EVs was strategic but not visionary
– The dependence on China for battery supplies poses long-term risks
– The shift towards EVs will eventually overpower plugin hybrids in the market, pending infrastructure development.
Article
The Twitter post from Car Dealership Guy highlighted Toyota’s strategy of focusing on hybrids before EVs, suggesting that Akio Toyoda’s decision to stick with hybrids was a smart move. The article discusses the rationale behind this strategy, mentioning the issues with battery supplies and the advantages of government-heavy economic systems like China’s in advancing battery technology. The article also points out the risks of depending on China for battery supplies, as seen in the rare earth minerals embargo against Japan in 2010.
While Toyota’s decision to focus on hybrids may have been strategic in terms of avoiding dependence on Chinese batteries, it may not have been the most forward-thinking choice. The article criticizes Toyota’s emphasis on boondoggles like hydrogen instead of developing better alternative energy supplies. This strategic error aligns Toyota with U.S. and European automakers, limiting their competitive edge in the long run as EVs become more cost-effective.
Despite the current dominance of inferior PHEVs in the U.S. market, the article predicts that this situation won’t last forever. As battery prices continue to fall, EVs will eventually become cheaper and more efficient than plugin hybrids, making them the preferred choice for consumers. However, the article highlights the importance of infrastructure development in enabling the widespread adoption of EVs, emphasizing the need for government and private industry to invest in charging networks.
The article concludes by suggesting that Toyota’s commitment to hybrids and hydrogen may hinder their future success as EVs become more cost-effective. While battery supplies are expected to improve and prices to drop, infrastructure development remains a critical factor in the transition to electric vehicles. The author believes that focusing on expanding charging networks will be crucial in encouraging consumers to make the switch from plugin hybrids to fully electric vehicles.
Read the full article here
