Johan van Zyl
President & CEO
Toyota Motor Europe
Many challenges facing our industry
TOYOTA MOTOR EUROPE
4 challenges
1. Building a sustainable business in Europe
2. Coping with 10 million sales globally
3. Embracing new technologies
4. Reducing our environmental impact
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Challenge 1
EUROPE GROWTH
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Different Challenges in East and West
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European mid-term focus
Sustainable business
with small cars
Product
& Brand
Power
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5%
share
Profitably
Toyota: Sustainable Growth in Europe
900k
Sales
in 2016
‘10
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’11 ’12 ’13 ‘14 ‘15 ’16
4.7%
share
Mid-term objectives
1 Million Sales
TOYOTA MOTOR EUROPE
#1
#1
Customer
Recommendation
Value Chain
Revenue
Better cars for Europe
Invest in
European
design
TOYOTA
C-HR
More local
R&D
responsibility
Local
production
“ An innovative and sophisticated car that
returns to change the parameters of the SUV”
“ Is a revolution running
at Toyota?”
TOYOTA MOTOR EUROPE
*concept
Local production increasing
2008 2009 2010 2011 2012 2013 2014 2015 2016
Toyota C-HR
• To start production in late
2016 in Turkey for Europe and
export
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+20%
in next
2 years
RAV4
• To start production in Russia
in August 2016
(Russia, Belarus, Kazakhstan)
Clear hybrid strategy
50%
31%
13%
2012
TOYOTA MOTOR EUROPE
2016
2020
Europe Hybrid leader outside Japan
10%
North America
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31%
Europe
Challenge 2
GLOBAL GROWTH
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10M* Challenges the Way We Work
10.2 M
10.1 M
10.1 M
2014
2015
2016 Plan
* 10M units including Toyota, Daihatsu & Hino
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Source: TMC
Two initiatives
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TNGA
NEW
ORGANISATION
Ever Better Cars
“Smaller Toyota”
Agility and Speed
TNGA: Making Ever Better Cars
Create products with
emotional appeal
Enhance product
marketability
At the same time
Commonize parts &
powertrain by groupbased development
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MOTOR
EUROPE
TOYOTA
MOTOR
EUROPE
TNGA
Reduce cost
Reinvest
TNGA: Making Ever Better Cars
TNGA
Styling parts
Optimised for
each market
Commonised
Functional parts
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% of vehicle cost
scope
TNGA: Making Ever Better Cars
TOYOTA MOTOR EUROPE
TNGA
TNGA: Making Ever Better Cars
TNGA
80% of global
production by 2020
2015
TOYOTA MOTOR EUROPE
2020
From a function-based organisation...
Small
Toyota
TMC
Toyota
#1
Jpn,
US, EU
Toyota
#2
Emerging
markets
Business units
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Unit
Centre
. R&D
LEXUS
. Production
Engineering
. Production
Functions for all vehicles
Product
centric
… To a product-based organisation
Head Office Functions
Toyota
#1
Jpn,
US, EU
Toyota
#2
Emerging
markets
Business units
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Internal companies
(each with a CEO)
<from R&D to Sales, Service>
Product centric companies
Small
Toyota
Small
Toyota
Smaller Toyota companies
Frontier Research Center
TMC
HEAD OFFICE
Toyota
#1
Toyota
#2
Business units
TOYOTA MOTOR EUROPE
Lexus
Corporate Strategy
Innovative
R&D
Toyota
Compact
Car
Mid-size
vehicles
Commercial
vehicles
Powertrain
Product centric companies
Toyota
Connected
Challenge 3
EMERGING TECHNOLOGIES
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Automotive key trends driving our future
Hybrid electric vehicles
Battery electric mobility
Fuel Cell vehicles
1917
2015
Woods Dual Power
Mirai
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Automotive key trends driving our future
Combustion era goes
up in smoke
May 11 2016
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Automotive key trends driving our future
Connectivity
& digitisation
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Customer data
Automotive key trends driving our future
Automated and self
driving cars
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“Automakers, not Silicon
Valley, lead in driverless
car patents.”
Reuters Jan 5 2016
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MOTOR
EUROPE
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MOTOR
EUROPE
The Next Frontier
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MOTOR
EUROPE
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MOTOR
EUROPE
Moving fast, globally
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CARMAKERS:
A NEW DIRECTION OF TRAVEL:
The industry contemplates a future
of driverless and shared vehicles
Jan 2016
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MOTOR
EUROPE
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MOTOR
EUROPE
Data drives mobility change
Automated driving
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MOTOR
EUROPE
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MOTOR
EUROPE
Challenge 4
OUR ENVIRONMENTAL IMPACT
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Prius concept @ 1995 Tokyo Motorshow
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Hybrid technology evolution
Fuel efficiency
l/100 km
5.1
4.3
3.9
3.0
HV system cost
First-generation Prius
Second-generation Prius
Third-generation Prius
Hybrid Vehicles technology significantly evolved
in fuel efficiency with reduced cost
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New Prius
Hybrid global sales
Cumulative
(million)
9 million
9 months!
9
8
million
8
7
6
5M
5
4
3M
3
1M
2
1
0
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
More than 9 million HVs in world wide cumulative sales to date
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Hybrid: Impact on CO2
Cumulative
(million
vehicles)
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
0
Cumulative
20
Million Tons
40
67 million
tons
60
67 million tonnes of cumulative CO2 reduction compared
to same class gasoline vehicles
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Hybrid: Mid term target
Million 15
2020 TARGET
Cumulative
15 million HVs
9
1
0
1997
2000
2005
2010
2015
2020
2050
HV target cumulative 15 millions in 2020, to lead next generation vehicles
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Developing Hydrogen FCV for 20 years
FCEV Fuel
H2 Stored in adsorbing alloy
1996
1999
FCHV-4 Fuel
FCHV
FCV-R Fuel
Hydrogen stored in
high-pressure tanks
Toyota-made tanks,
1st FCV homologated
Mirai precursor
2001
2002
2005
2009
2011
2015
FCHV-3 Fuel
FCHV-5 Fuel
FCHV-adv Fuel
Mirai
Hydrogen
(adsorbing alloy)
Hydrogen generated on-board
by reforming on gasoline
New stack,
stainless steel cells
Revolutionary Titanium stack,
3.1 kW/L world record
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H2 helps addressing some key problems
CLIMATE
CHANGE
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AIR
QUALITY
ENERGY
SECURITY
Sales: Mirai sales plan in 2020 and after
GLOBAL:
More than 30,000/year around 2020 and after
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About 5,680 FCV related Toyota patents
ITEM
FC stack
High-pressure hydrogen tanks
FC system control
Hydrogen station
NUMBER OF PATENTS
TO BE FREE
FREE USE PERIOD
Approx. 1,970
Approx. 290
Until the end
of 2020
Approx. 3,350
Approx. 70
No expiration
Announcement at CES on January 6
by TMS SVP Bob Carter
Toyota share all patents for free to accelerate the spread of FCV
TOYOTA MOTOR EUROPE
Fuel cell research: Partnership with BMW
DEVELOPING NEXT GENERATION FCV SYSTEM TOGETHER
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Looking forward
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Annual greenhouse gas emissions
Baseline scenario
(+3.7~4.8℃)
(RPC8.5)
1,000 Tg CO2 140
Eq./year
120
100
80
60
Below 2℃
scenario
(RPC2.6)
40
20
0
20
2000
2020
2040
2060
Full-scale initiatives to reduce CO2 emissions
2080
2100
Zero or less
Regarding GHG emissions, there is no time to lose
Source: From the IPCC Working Group III 5th Assessment Report (2014)
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New Vehicle
Zero CO2
Emissions Challenge
Challenge of
Minimizing and
Optimizing
Water Usage
Challenge of
Establishing a
Recycling-based
Society and Systems
Life Cycle
Zero CO2
Emissions Challenge
Plant Zero CO2
Emissions Challenge
Challenge of
Establishing a Future
Society in Harmony
with Nature
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“We must complete the Toyota
Environmental Challenge 2050
at all costs for our vehicles to always
be beloved by our customers.”
Akio Toyoda
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TOYOTA MOTOR EUROPE
Long term trends by engine types
Sales
volume
HV
Conventional
PHV
PHV
FCV
FCV
2010
2020
Accelerate next generation vehicle
development toward 90% CO2 reduction
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EV
EV
2050
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Life cycle Zero CO2
Disposal/recycling
Maintenance
Driving
Fuel production
Parts/vehicle production
Material production
Gasoline
vehicles
HV
MIRAI
New generation
Vehicles
Zero
In the future
Next generation vehicle emits zero CO2 during driving
however, material, parts/vehicle production still do
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TOYOTA MOTOR EUROPE
Focus on 2 pillars
Reduced by low
CO2-emitting production
technologies and daily
Kaizen activities
CO2 emissions under “Business As Usual”
Plant CO2 emissions ➡
Aiming for zero in the long run
2001
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Reduced by using
renewable energy
and hydrogen
2030
2050
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Importance of cooperation by all stakeholders
Customers
Energy
suppliers
Carbon free
Mobility & Society
Governments
Industry
Zero CO2 Challenge in cooperation with stakeholders
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Thank you
TOYOTA MOTOR EUROPE