More on the Lexus Transition to Pure Electric


In a Q&A with journalists last month, Lexus president Koji Sato spoke at length about the brand’s upcoming shift to pure-electric vehicles. The entire interview also features Toyota president Akio Toyota and is worth reading, but let’s highlight some key Sato quotes on Lexus’ transition.

We will clarify the role of the Lexus brand within the company, which is to be a front runner in advanced technology areas and to lead our BEV products.

The announcement that Lexus would become an EV-only brand by 2030 marks a radical departure for the brand, perhaps even too radical. With such a massive shift in strategy, nearly everything about Lexus will change. This quote from Sato confirms that Lexus management is prepared to make hard decisions — models may be cancelled, customers not ready for EV may move elsewhere, but Lexus is moving straight forward.

BEVs use electricity and electric motors for wonderful responsiveness with smooth acceleration and deceleration, and quietness. This is something internal combustion engines don’t have.

Especially in the luxury segment, customers are looking for acceleration. Electric motors may be able to offer greater performance that engines cannot.

I actually think the time has come now. We spent about 10 years under the Master Driver Toyoda, going through tough trials to improve our cars. We’ve been trying to figure out what makes a Toyota or Lexus car unique.

It took 10 years for us to come up with a BEV which can make Akio Toyoda smile a little, finally. I think BEVs are a catalyst for making cars more fun and enjoyable. In particular, electrification technologies are very effective in controlling the vehicle’s driving power.

So, believing that BEVs will give us an opportunity for a more exciting future, Lexus is going to shift toward BEVs.

Given the out-of-nowhere vibe of this announcement and Akio Toyota’s well-known skepticism of pure-electric cars, there was a worry that this switch was an abrupt (and purely financial) decision — instead, it appears that new developments has finally spurred Toyota to change his stance. And that, to me, is maybe the most exciting aspect of all — has Akio Toyota finally warmed to the Lexus brand?

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Jeonsa

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After all the Lexus people failed to impress the boss with a 650PS LC-F prototype. So it must took something 'way more powerful' as he requested for him to change his mind. I don't think that casual ride in the RZ was what convinced him.
Definitely agree, he kind of gave that vibe off during the Q&A
 

CRSKTN

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LS500-18

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I think that is very smart to use solid state in hybrids first. It gets waaaay more batteries out in the real world faster and at lower cost which will result in better tech faster, even though it doesn't mean SSB BEV right away.

Sure it's not politically correct to keep pushing hybrids, BEV fans will continue their drivel about non-BEVs.
 
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I think that is very smart to use solid state in hybrids first. It gets waaaay more batteries out in the real world faster and at lower cost which will result in better tech faster, even though it doesn't mean SSB BEV right away.

Sure it's not politically correct to keep pushing hybrids, BEV fans will continue their drivel about non-BEVs.
And you know, political correctness doesn't mean its right.
 

mikeavelli

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After all the Lexus people failed to impress the boss with a 650PS LC-F prototype. So it must took something 'way more powerful' as he requested for him to change his mind. I don't think that casual ride in the RZ was what convinced him.
Uhhh, the LC chief engineer is Koji Sato. It wasn’t a fail, it sounds like it’s more like “let’s just do something better”.
 

ssun30

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I came across this very interesting read on the ongoing power struggle within TMC.

From this article, the December 14 press event really was a surprise move by Akio Toyoda and his inner circle of loyalists. Most of the company's management were NOT aware of the sudden change in strategy until the event was announced, and are suspecting the financial feasibility of the plan.

To be fair they have a really good point. I just pointed out in another thread that TMC will be releasing at least 7 products per year with the new EV plan. That is really risky and could bring the company down if the execution is not perfect.

https://gendai.ismedia.jp/articles/-/92128?page=4

You can use deepl, very good AI translation software. The article claims TMC is "collapsing from the middle level" due to Akio Toyoda's erratic behavior and despotic rule. His certain western style reforms like flat organization, performance-based promotion, and emphasis on accelerating career of young talents is causing a lot of middle management to leave the company. Many of them fear speaking out seeing the "old guards" getting purged because they disagree with the big boss. There is a lot going on in the company and this really is a historic moment for the world's biggest car company.

On one hand you can call Akio a charismatic leader (especially from a western point of view) but on the other hand he is just too brash for a historically conservative company.
 
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Levi

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I think he is doing the right thing for the company. All German car makers have changed their top management and are positioning themselves to more modern management school that focuses on flexibility, needed in a fast paced environment. Japanese management school was very effective "before", but in the current business world, it is not competitive. Japanese car makers are struggling (see Nissan, Mitsubishi, Honda, Subaru, Mazda, Suzuki -- now the three later now under Toyota help), and all consumer focused tech/appliance companies are almost dead, or very little is left of them (Panasonic, Sony, Sharp, Toshiba,...).

I hope Akio can pull all that off and will belong to the list of great leaders in the auto industry.
 

LarryT

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I came across this very interesting read on the ongoing power struggle within TMC.

From this article, the December 14 press event really was a surprise move by Akio Toyoda and his inner circle of loyalists. Most of the company's management were NOT aware of the sudden change in strategy until the event was announced, and are suspecting the financial feasibility of the plan.

To be fair they have a really good point. I just pointed out in another thread that TMC will be releasing at least 7 products per year with the new EV plan. That is really risky and could bring the company down if the execution is not perfect.

https://gendai.ismedia.jp/articles/-/92128?page=4

You can use deepl, very good AI translation software. The article claims TMC is "collapsing from the middle level" due to Akio Toyoda's erratic behavior and despotic rule. His certain western style reforms like flat organization, performance-based promotion, and emphasis on accelerating career of young talents is causing a lot of middle management to leave the company. Many of them fear speaking out seeing the "old guards" getting purged because they disagree with the big boss. There is a lot going on in the company and this really is a historic moment for the world's biggest car company.

On one hand you can call Akio a charismatic leader (especially from a western point of view) but on the other hand he is just too brash for a historically conservative company.

Considering Akio Toyoda's haphazard, short sided ways, it's no wonder that Lexus vehicles took a downturn in regards to quality, innovation & technology.

https://www.wsj.com/articles/toyotas-chief-says-electric-vehicles-are-overhyped-11608196665

https://global.toyota/pages/news/images/2021/12/BEV/20211214_BEV_01_en.pdf
 

Levi

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Considering Akio Toyoda's haphazard, short sided ways, it's no wonder that Lexus vehicles took a downturn in regards to quality, innovation & technology.

https://www.wsj.com/articles/toyotas-chief-says-electric-vehicles-are-overhyped-11608196665

https://global.toyota/pages/news/images/2021/12/BEV/20211214_BEV_01_en.pdf
Akio on the contrary is not haphazard or short sighted. If he was we would have many TTV8 models (that would still not sell competitively against the power of German badge regardless how superior the F models would be), all the latest that turns out to be buggy. And yes, electric cars are overhyped with regards to being the one and only solution to I don't even exactly know which problem.
 

LarryT

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Akio on the contrary is not haphazard or short sighted. If he was we would have many TTV8 models (that would still not sell competitively against the power of German badge regardless how superior the F models would be), all the latest that turns out to be buggy. And yes, electric cars are overhyped with regards to being the one and only solution to I don't even exactly know which problem.

I disagree, as many past & present Lexus vehicles have been on the downslope since Akio took helm in 2009 & his overall shortsightedness & erratic product planning is what helped end Lexus supremacy in the U.S. luxury car market & is also why Lexus has fallen short of winning the annual U.S. luxury sales race in over a decade.
 
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