Further Reduction in CO2 Emissions

Toyota has been developing and testing plug-in hybrid vehicles based on the previous generation Prius in collaboration with the French electric utility EDF since 2007. The plug-in hybrid vehicle based on the new Prius, to be announced this time, is a more advanced model that leverages the various know-how gained from that experience.

A notable change is the switch from nickel-hydrogen to lithium-ion batteries for the secondary battery. Thanks to the improved performance of the lithium battery, short urban drives will essentially be entirely in EV mode, powered by the motor. The electricity used for this can be charged not only during driving, as with conventional hybrids, but also from household or public charging outlets. According to Toyota's announcement, the EV mode driving range will be longer than that of the currently commercially available Prius, allowing for further reductions in CO2 emissions.

On the other hand, for highway driving and longer urban journeys, the engine and motor will be used in combination, similar to conventional hybrid vehicles.

This new Prius plug-in hybrid concept will be officially unveiled at the Frankfurt Motor Show. In Europe, a lease sale of 150 units is planned to begin in early 2010.

BRAND HISTORY
Toyota's origins as an automobile manufacturer date back to 1936. The initial lineup featured a six-cylinder model with a streamlined body, popular at the time, and a model targeting the upper market. In the late 1950s, the Corona, a 1-liter model, and the Crown, a 1.5-liter model, were added to the lineup. In the 1960s, as part of a corporate strategy to expand sales in the U.S. market, Toyota developed a range of vehicles from compact models to V8-powered cars, embarking on a path to become a full-line manufacturer.

The key to Toyota's growth lies in its thorough market-centric approach. In the 1960s, the company succeeded in the U.S. market by introducing models that targeted small cars from Britain and Italy. Subsequently, its product strategy of offering appropriate performance at appropriate prices was applied across a wide range of vehicles, from large sedans to sports cars. Later, by establishing factories in the U.S., Toyota began producing many vehicles specifically for the American market, such as large pickup trucks.

Domestically, the period of high economic growth in the 1960s marked a peak, and with contributions from sales and marketing efforts, Toyota secured a solid position through its diverse product offerings. In the U.S., its primary market, the two oil crises of the 1970s proved to be a tailwind, and Toyota experienced rapid growth by leveraging its strengths in small size and fuel efficiency. A significant leap forward in recent times occurred in the late 1980s with the launch of Lexus, a separate brand from Toyota, in response to the growing demand for luxury cars in the U.S. Adopting a philosophy of "genryu shugi"—meticulous quality control from the smallest component—Lexus established itself with a high level of perceived quality.

Another major leap was the launch of the Prius in 1997. While the hybrid powertrain was unfamiliar to the general public, it was criticized by the automotive industry at the time as "meaningless in the context of the technological progression from internal combustion engines (like gasoline and diesel engines) towards fuel cells." However, its foresight is evident in Toyota's current success. Manufacturers worldwide are now promoting hybridization, albeit with slight variations in approach. Furthermore, other automakers have had to acknowledge that the battery technology essential for hybrid vehicles is also crucial for electric vehicles and the fuel cell vehicles that may follow.

Following the so-called Lehman shock in the U.S. in September 2008, luxury car sales have slowed, and around the same time, product recalls became a major topic in the U.S. Congress, suggesting that Toyota is currently facing headwinds. The early withdrawal from Formula 1, in which it participated in 2002, in 2009 also disappointed fans. However, Toyota has announced a resumption of international racing activities, with an eye on the World Rally Championship, raising expectations for the future. (Updated August 2010)