Toyota Accelerates EV Ambitions: Gearing Up for a Showdown with Tesla

Toyota Motor Corp TM is eyeing a factory floor overhaul after making sweeping changes to its leadership team as it migrates to a new, dedicated platform for battery electric vehicles.
Koji Sato may confirm that new EV architecture is in the works at his first briefing as CEO on Friday, Reuters reports citing familiar sources.
In his briefing, Sato will likely lay out a strategy emphasizing "diverse powertrains" while stressing that gasoline hybrids will remain critical to its business even as it ramps up EVs.
Toyota increasingly recognizes the need to match Tesla Inc's TSLA design and manufacturing innovations to reduce production costs and turn its all-electric business into a higher margin one.
If it comes to fruition, the new EV platform will result from a far-reaching review of Toyota's 2022 electric-car strategy.
Unlike Tesla's massive Giga Press casting machines and other manufacturing innovations, Toyota's current production architecture, the e-TNGA system, is not a cost-effective method.
Sato recently attended an internal presentation that focused on the need for a dedicated battery-electric platform, a more competitive system to manage heat generated by the battery, and other innovations influenced by Tesla's playbook.
Environmentalists, investors, and suppliers have voiced the need for Toyota to move faster. Some suppliers look to ramp up business with other manufacturers to hedge their risk regarding EVs.
Tesla made almost eight times the profit per vehicle as Toyota for the third quarter, partly because of its ability to simplify production and reduce cost.
In the U.S., where EV growth is outpacing the overall market, Toyota's lack of electric battery models appears to be hurting sales. Toyota reported U.S. sales fell by nearly 9% during Q1, while General Motors Co GM saw an 18% boost.
U.S. consumers switching to EVs mainly from Toyota and Honda Motor Company, Ltd HMC, data from S&P Global Mobility showed in November.
Price Action: TM shares traded lower by 1.10% at $138.87 on the last check Thursday.

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