Toyota Motor Corp – ReportWire

Japan’s economy contracts as exports get hit by US tariffs

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TOKYO (AP) — Japan’s economy sank at an annualized rate of 1.8% in the July-September period, government data showed Monday, as President Donald Trump’s tariffs sent the nation’s exports spiraling.

On a quarter-by-quarter basis, Japan’s gross domestic product, or GDP, or the sum value of a nation’s goods and services, slipped 0.4%, in the first contraction in six quarters, the Cabinet Office said.

The annualized rate shows what the economy would have done if the same rate were to continue for a year. The fall was still smaller than the 0.6% drop the market had expected.

A big decline during the quarter came in exports, which were 1.2% down from the previous quarter.

Some businesses had sped up exports, when they could, to beat the tariffs kicking in, inflating some of the earlier data for exports.

On an annualized basis, exports dropped 4.5% in the three months through September.

Imports for the third quarter slipped 0.1%. Private consumption edged up 0.1% during the quarter.

Tariffs are a major blow to Japan’s export-reliant economy, led by powerful automakers like Toyota Motor Corp., although such manufacturers have over the years moved production abroad to avert the blunt of tariffs.

The U.S. now slaps a 15% tariff on nearly all Japanese imports. Earlier the tariffs were 25%.

Japan also faced political uncertainty recently, until Sanae Takaichi became prime minister in October.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

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November 16, 2025

One Tech Tip: Modern cars are spying on you. Here’s what you can do about it

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While driving to a new restaurant, your car’s satellite navigation system tracks your location and guides you to the destination. Onboard cameras constantly track your face and eye movements. When another car veers into your path, forcing you to slam on the brakes, sensors are assisting and recording. Waiting at a stoplight, the car notices when you unbuckle your seat belt to grab your sunglasses in the backseat.

Modern cars are computers on wheels that are becoming increasingly connected, enabling innovative new features that make driving safer and more convenient. But these systems are also collecting reams of data on our driving habits and other personal information, raising concerns about data privacy.

Here is what to know about how your car spies on you and how you can minimize it:

How cars collect data

It’s hard to figure out exactly how much data a modern car is collecting on you, according to the Mozilla Foundation, which analyzed privacy practices at 25 auto brands in 2023. It declared that cars were the worst product category that the group had ever reviewed for privacy.

AP AUDIO: One Tech Tip: Modern cars are spying on you. Here’s what you can do about it

Modern cars are spying on you. AP’s Kelvin Chan reports.

The data points include all your normal interactions with the car — such as turning the steering wheel or unlocking doors — but also data from connected onboard services, like satellite radio, GPS navigation systems, connected devices, telematics systems as well as data from sensors or cameras.

Vehicle telematics systems started to become commonplace about a decade ago, and the practice of automotive data collection took off about five years ago.

The problem is not just that data is being collected but who it’s provided to, including insurers, marketing companies and shadowy data brokers. The issue surfaced earlier this year when General Motors was banned for five years from disclosing data collected from drivers to consumer reporting agencies.

The Federal Trade Commission accused GM of not getting consent before sharing the data, which included every instance when a driver was speeding or driving late at night. It was ultimately provided to insurance companies that used it to set their rates.

Be aware

The first thing drivers should do is be aware of what data their car is collecting, said Andrea Amico, founder of Privacy4Cars, an automotive privacy company.

In an ideal world, drivers would read through the instruction manuals and documentation that comes with their cars, and quiz the dealership about what’s being collected.

But it’s not always practical to do this, and manufacturers don’t always make it easy to find out, while dealership staff aren’t always the best informed, Amico said.

Privacy4Cars offers a free auto privacy labeling service at vehicleprivacyreport.com that can summarize what your car could be tracking.

Owners can punch in their car’s Vehicle Identification Number, which then pulls up the automaker’s data privacy practices, such as whether the car collects location data and whether it’s given to insurers, data brokers or law enforcement.

Tweak your settings

Data collection and tracking start as soon as you drive a new car off the dealership lot, with drivers unwittingly consenting when they’re confronted with warning menus on dashboard touch screens.

Experts say that some of the data collection is baked into the system, you can revoke your consent by going back into the menus.

“There are permissions in your settings that you can make choices about,” said Lauren Hendry Parsons of Mozilla. “Go through on a granular level and look at those settings where you can.”

For example, Toyota says on its website that drivers can decline what it calls “Master Data Consent” through the Toyota app. Ford says owners can opt to stop sharing vehicle data with the company by going through the dashboard settings menu or on the FordPass app.

BMW says privacy settings can be adjusted through the infotainment system, “on a spectrum between” allowing all services including analysis data and none at all.

You can opt out

…

Drivers in the U.S. can ask carmakers to restrict what they do with their data.

Under state privacy laws, some carmakers allow owners across the United States to submit requests to limit the use of their personal data, opt out of sharing it, or delete it, Consumer Reports says. Other auto companies limit the requests to people in states with applicable privacy laws, the publication says.

You can file a request either through an online form or the carmaker’s mobile app.

You can also go through Privacy4Cars, which provides a free online service that streamlines the process. It can either point car owners to their automaker’s request portal or file a submission on behalf of owners in the U.S., Canada, the European Union, Britain and Australia.

… but there will be trade-offs

Experts warn that there’s usually a trade-off if you decide to switch off data collection.

Most people, for example, have switched to satellite navigation systems over paper maps because it’s “worth the convenience of being able to get from point A to point B really easily,” said Hendry Parsons.

Turning off location tracking could also halt features like roadside assistance or disable smartphone app features like remote door locking, Consumer Reports says.

BMW advises that if an owner opts to have no data shared at all, “their vehicle will behave like a smartphone in flight mode and will not transmit any data to the BMW back end.”

When selling your car

When the time comes to sell your car or trade it in for a newer model, it’s no longer as simple as handing over the keys and signing over some paperwork.

If you’ve got a newer car, experts say you should always do a factory reset to wipe all the data, which will also include removing any smartphone connections.

And don’t forget to notify the manufacturer about the change of ownership.

Amico said that’s important because if you trade in your vehicle, you don’t want insurers to associate it with your profile if the dealer is letting customers take it for test drives.

“Now your record may be affected by somebody else’s driving — a complete stranger that you have no relationship with.”

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Is there a tech topic that you think needs explaining? Write to us at [email protected] with your suggestions for future editions of One Tech Tip.

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This story has been corrected to show that the Mozilla representative’s first name is Lauren, not Laura.

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November 7, 2025

Mercedes-Benz workers in Alabama vote against UAW union membership

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United Auto Workers (UAW) members and supporters on a picket line outside the ZF Chassis Systems plant in Tuscaloosa, Alabama, US, on Wednesday, Sept. 20, 2023.

Andi Rice | Bloomberg | Getty Images

Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.

The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee. Voting started Monday and ended Friday.

Union organizing failed with 56% of the vote, or 2,642 workers, casting ballots against the UAW, according to the NLRB, which oversaw the election. More than 90% of the 5,075 eligible Mercedes-Benz workers voted in the election, according to the results.

The NLRB said 51 ballots were challenged and not counted, but they aren’t determinative to the outcome of the election. There were five void ballots.

The union and company have five business days to file objections to the election, including any alleged interference, according to the NLRB. If no objections are filed, the election result will be certified, and the union will have to wait one year to file for a union election for a similar bargaining unit.

Mercedes-Benz in a statement said company officials “look forward to continuing to work directly with our Team Members to ensure [Mercedes-Benz US International] is not only their employer of choice, but a place they would recommend to friends and family.”

United Auto Workers President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) lead a march outside Stellantis’ Ram 1500 plant in Sterling Heights, Michigan after the union called a strike at the plant on Oct. 23, 2023.

Michael Wayland / CNBC

The loss is expected to hurt the UAW in an unprecedented organizing drive launched late last year of 13 non-union automakers in the U.S. after securing record contracts with Detroit automakers Ford Motor, General Motors and Stellantis. Those agreements included significant wage increase, reinstatement of cost-of-living adjustments and other benefits.

UAW President Shawn Fain said while the Mercedes-Benz vote was obviously not the result the union wanted, it was a valiant effort, adding the vote “isn’t a failure” but a “bump in the road.”

“While this loss stings, I’ll tell you this, we’re going to keep our heads up, keep our heads up high. These workers have nothing to do but be proud in the effort they put forth and what they’ve done,” he said Friday during a media conference. “We fought the good fight and we’re going to continue on, continue forward. Ultimately, these workers here are going to win.”

The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant in Tennessee, where the union had already established a presence after two failed organizing drives in the past decade and where it faced less opposition from the automaker.

Stephen Silvia, author of “The UAW’s Southern Gamble: Organizing Workers at Foreign-Owned Vehicle Plants,” noted Mercedes-Benz replaced the plant’s leader weeks ahead of the election. He said companies routinely do this, promising workers changes at their facilities in an effort to stave of organizing.

“Companies do anti-union campaigns because they can be effective, and I think this one was effective,” said Silvia, a professor at American University in Washington, D.C. “A common piece of an anti-union campaign is firing the plant manager … That seems to have persuaded enough of the workers to vote against the union.”

Alabama Gov. Kay Ivey, who was one of six Republican governors to condemn the union’s organizing drive, hailed the outcome of the vote.

“The workers in Vance have spoken, and they have spoken clearly! Alabama is not Michigan, and we are not the Sweet Home to the UAW. We urge the UAW to respect the results of this secret ballot election,” she said.

Workers at Mercedes-Benz’s Tuscaloosa plant, located about 60 miles southwest of Birmingham, have produced more than 4 million vehicles since the plant opened in 1997, including 295,000 vehicles in 2023, according to the plant’s website.

The Alabama plant currently produces vehicles such as the gas-powered GLE and GLS Maybach SUVs as well as the all-electric EQS and EQE SUVs.

The NLRB last week said it continues to process and investigate open unfair labor practice charges filed by the UAW against automakers, including six unfair labor practice charges against Mercedes-Benz since March.

Fain said Friday the union would continue to move forward with those charges. He declined to say whether the union plans to challenge the election results, saying he’d “leave that” to the union’s legal team.

The charges allege that Mercedes-Benz has “disciplined employees for discussing unionization at work, prohibited distribution of union materials and paraphernalia, surveilled employees, discharged union supporters, forced employees to attend captive audience meetings, and made statements suggesting that union activity is futile,” the NLRB said.

The union has filed other charges against automakers Honda, Hyundai, Lucid, Rivian, Tesla and Toyota, according to the NLRB.

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May 17, 2024

Autos analysts pick who can survive China’s cut-throat EV market

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May 5, 2024

Inflation has created a dark cloud over how everyday Americans view the economy

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Grocery items are offered for sale at a supermarket on August 09, 2023 in Chicago, Illinois.

Scott Olson | Getty Images

When Kyle Connolly looks back at 2023, she sees it as a year defined by changes and challenges.

The newly single parent reentered the workforce, only to be laid off from her job at a custom home-building company in November. At the same time, Connolly has seen prices climb for everything from her Aldi’s grocery basket to her condo’s utility costs.

In turn, she’s cut back on everyday luxuries like eating out or going to the movies. Christmas will look pared down for her three kids compared to years prior.

“I’ve trimmed everything that I possibly can,” said the 41-year-old. “It sucks having to tell my kids no. It sucks when they ask for a little something extra when we’re checking out at the grocery store and having to tell them, ‘No, I’m sorry, we can’t.’”

Economic woes have seemed more apparent within her community in Florida’s panhandle. Connolly has noticed fewer 2022 Chevy Suburbans on the road, replaced by older Toyota Camry models. The waters typically filled with boats have been eerily quiet as owners either sold them or tried to cut back on gas costs. Fellow parents have taken to Facebook groups to discuss ways to better conserve money or rake in extra income.

The struggles among Connolly and her neighbors highlight a key conundrum puzzling economists: Why does the average American feel so bad about an economy that’s otherwise considered strong?

‘High prices really hurt’

By many accounts, it has been a good year on this front. The annualized rate of price growth is sliding closer to a level preferred by the Federal Reserve, while the labor market has remained strong. There’s rising hope that monetary policymakers have successfully cooled inflation without tipping the economy into a recession.

Yet closely watched survey data from the University of Michigan shows consumer sentiment, while improving, is a far cry from pre-pandemic levels. December’s index reading showed sentiment improved by almost 17% from a year prior, but was still nearly 30% off from where it sat during the same month in 2019.

“The main issue is that high prices really hurt,” said Joanne Hsu, Michigan’s director of consumer surveys. “Americans are still trying to come to grips with the idea that we’re not going back to the extended period of low inflation, low interest rates that we had in the 2010s. And that reality is not the current reality.”

Still, Hsu sees reason for optimism when zooming in. Sentiment has largely improved from its all-time low seen in June 2022 — the same month the consumer price index rose 9.1% from a year earlier — as people started noticing inflationary pressures recede, she said.

One notable caveat was the drop in sentiment this past May, which she tied to the U.S. debt ceiling negotiations. The 2024 presidential election has added to feelings of economic uncertainty for some, Hsu said.

Inflation vs. the job market

Continued strength in the labor market is something economists expected to sweeten everyday Americans’ views of the economy. But because consumers independently decide how they feel, jobs may hold less importance in their mental calculations than inflation.

There are still more job openings than there are unemployed people, according to the latest data from the Bureau of Labor Statistics. Average hourly pay has continued rising — albeit at a slower rate than during the pandemic — and was about 20% higher in November than it was in the same month four years ago, seasonally adjusted Labor Department figures show.

That’s helped boost another widely followed indicator of vibes: the Conference Board’s consumer confidence index. Its preliminary December reading was around 14% lower than the same month in 2019, meaning it has rebounded far more than the Michigan index.

While the Michigan index compiles questions focused on financial conditions and purchasing power, the Conference Board’s more closely gauges one’s feelings about the job market. That puts the latter more in line with data painting a rosier picture of the economy, according to Camelia Kuhnen, a finance professor at the University of North Carolina.

“You think that they’re talking about different countries,” Kuhnen said of the two measures. “They look different because they focus on different aspects of what people would consider as part of their economic reality.”

A hot job market can be a double-edged sword for sentiment, Michigan’s Hsu noted. Yes, it allows workers to clinch better roles or higher pay, she said. But when those same workers put on their consumer hats, a tight market means shorter hours or limited availability at their repair company or veterinarian’s office.

Silver linings for some

Other reasons why consumers feel positively about the economy this year can only be true for certain — and often wealthier — groups, economists say.

UNC’s Kuhnen said Americans would be pleased if they are homeowners seeing price appreciation. Another reason for optimism: If they had investments during 2023’s stock market rebound.

Without those cushions, people on the lower end of the income spectrum may feel more of a pinch as higher costs bite into any leftover savings from pandemic stimulus, Kuhnen said. Elsewhere, the resumption of student loan payments this year likely also caused discontent for those with outstanding dues, according to Karen Dynan, a Harvard professor and former chief economist for the U.S. Treasury Department.

Marissa Lyda moved with her husband and two kids to Phoenix from Portland earlier this year, in part due to lower housing costs. With profits from the value gained on the property she bought in 2019, her family was able to get a nicer house in the Grand Canyon state.

Yet she’s had to contend with an interest rate that’s more than double what she was paying on her old home. Though Arizona’s lower income tax has fattened her family’s wallet, Lyda has found herself allocating a sizable chunk of that money to her rising grocery bill.

The stay-at-home mom has switched her go-to grocer from Kroger to Walmart as value became increasingly important. She’s also found herself searching harder in the aisles for store-brand food and hunting for recipes with fewer ingredients.

Her family’s financial situation certainly doesn’t feel like it reflects the economy she hears experts talking about, Lyda said. It’s more akin to the videos she sees on TikTok and chatter among friends about how inflation is still pinching pocketbooks.

“I look at the news and see how they’re like, ‘Oh, best earnings, there’s been great growth,’” the 29-year-old said. “And I’m like, ‘Where’s that been?’”

‘Just trying to hold on’

Economists wonder if social media discourse and discussion about a potential recession have made Americans think they should feel worse about the economy than they actually do. That would help explain why consumer spending remains strong, despite the fact that people typically tighten their belts when they foresee financial turmoil.

There’s also a feeling of whiplash from the runaway inflation that snapped a long period of low-to-normal price growth, said Harvard’s Dynan. Now, even as the annual rate of inflation has cooled to more acceptable levels, consumers remain on edge as prices continue to creep higher.

“People are still angry about the inflation we saw in 2021 and, in particular, 2022,” Dynan said. “There’s something about the salience of … the bill for lunch that you see every single day that just maybe resonates in your brain, relative to the pay increase you get once a year.”

Federal Reserve Board Chairman Jerome Powell speaks during a press conference following a closed two-day meeting of the Federal Open Market Committee on interest rate policy at the Federal Reserve in Washington, U.S., December 13, 2023.

Kevin Lamarque | Reuters

Another potential problem: The average person may not completely understand that some inflation is considered normal. In fact, the Federal Reserve, which sets U.S. monetary policy, aims for a 2% increase in prices each year. Deflation, which is when prices decrease, is actually seen as bad for the economy.

Despite these quandaries, economists are optimistic for the new year as it appears increasingly likely that a recession has been avoided and the Fed can lower the cost of borrowing money. For everyday Americans like Connolly and Lyda, inflation and their financial standing will remain top of mind.

Lyda has cut treats like weekly Starbucks lattes out of the budget to ensure her family can afford a memorable first holiday season in their new home. In 2024, she’ll be watching to see if the Fed cuts interest rates, potentially creating an opportunity to refinance the loan on that house.

“You just have to realize that every season of life may not be this huge financial season,” Lyda said. “Sometimes you’re in a season where you’re just trying to hold on. And I feel like that’s what it’s been like for most Americans.”

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December 25, 2023

Why automakers are turning to hybrids in the middle of the industry's EV transition

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2023 Prius Prime on display, April 6, 2023.

Scott Mlyn | CNBC

DETROIT — As sales of all-electric vehicles grow more slowly than expected, major automakers are increasingly meeting their customers in the middle.

More and more companies are reconsidering the viability of hybrid cars and trucks to appease consumer demand and avoid costly penalties related to federal fuel economy and emissions standards.

The shifting strategies run counterintuitively to industrywide EV messaging of recent years. Many auto companies have begun to invest billions of dollars in all-electric vehicles, and the Biden administration has made a push to get more EVs on U.S. roadways as quickly as possible.

But hybrid vehicles — those with traditional internal combustion engines combined with EV battery technologies — could help the automotive industry lower fuel consumption and emissions in the short-term, while easing consumers into vehicle electrification.

Sales of traditional hybrid electric vehicles, or HEVs, such as the Toyota Prius, are outpacing those of all-electric vehicles in 2023, according to Edmunds. HEVs accounted for 8.3% of U.S. car sales, about 1.2 million vehicles sold, through November of this year. That share is up 2.8 percentage points compared with total sales last year.

EVs made up 6.9% of sales heading into December, or roughly 976,560 units, up 1.7 percentage points compared with total sales last year. Sales of plug-in hybrid electric vehicles, or PHEVs, accounted for only 1% of U.S. sales through November.

“There’s been so much talk over the past few years about the move toward electrification and sort of forgoing hybrids, but … hybrids are not dead,” said Jessica Caldwell, Edmunds executive director of insights. “There’s a lot of consumers out there that are interested in electrification, maybe not ready to go fully electric.”

Hybrids can also cost less and relieve many concerns typically associated with EVs such as range anxiety and lack of charging infrastructure. The average hybrid this year cost $42,381, according to Edmunds. That’s below the roughly $59,400 average for an EV; $60,700 for a PHEV; and $44,800 for a traditional vehicle.

Morgan Stanley earlier this month said Toyota Motor, Honda Motor and Hyundai Motor, including Kia, account for 9 out of 10 hybrid sales in the U.S. Representatives for those automakers said they are actively attempting to increase production and sales of hybrid vehicles in the U.S.

“While the transition to full battery electric transportation will take time, hybrids and plug-in hybrids will play an equally important role in Kia America’s near and mid-term goals,” Eric Watson, vice president of Kia America sales, said in a statement to CNBC.

And other companies, such as the Detroit automakers, are following suit.

Detroit Three automakers

The Detroit automakers have varying strategies for hybrid vehicles.

Ford Motor offers PHEVs but is leaning into HEVs, announcing plans in September to double sales of the V-6 hybrid model during the 2024 model year to roughly 20% in the U.S. It’s part of Ford CEO Jim Farley’s plans to quadruple the company’s production of gas-electric hybrids.

Ford’s hybrid sales through November of this year are up 23% over the same period in 2022 to more than 121,000 units, or 6.8% of its total sales through that point. In comparison, Ford’s EV sales are up 16.2% to roughly 62,500 units, accounting for 3.5% of its total sales.

Battery breakdown

Both hybrids and plug-in hybrids have a traditional engine combined with EV technologies. A traditional hybrid such as the Toyota Prius has electrified parts, including a small battery, to provide better fuel economy to assist the engine. PHEVs typically have a larger battery to provide for all-electric driving for a certain number of miles until an engine is needed to power the vehicle or electric motors.

Chrysler parent Stellantis, for its part, is leaning on PHEVs for its electrification strategy, before introducing a host of EVs starting next year. The company is the top seller of plug-in hybrid electric vehicles in the U.S., and the vehicles accounted for about 10% of the company’s third-quarter sales, led by Jeep Wrangler and Grand Cherokee SUVs.

But General Motors isn’t ready just yet to alter its EV plans, which include a goal to exclusively offer all-electric vehicles by 2035.

GM led the way for plug-in electric vehicles with the Chevrolet Volt during the 2010s. The company discontinued the vehicle in early 2019, citing demand and cost concerns.

Since then, the automaker has not offered another hybrid vehicle in the U.S. other than the recently launched Chevrolet Corvette E-Ray, a hybrid version of the famed sports car. GM does offer hybrids, including PHEVs, in China.

2024 Chevrolet Corvette E-Ray hybrid sports car

GM

“We still have a plan in place that allows us to be all light-duty vehicles EV by 2035,” GM CEO Mary Barra said Monday during an Automotive Press Association meeting in Detroit. “We’ll adjust based on where the customer is and where demand is. It’s not going to be ‘if we build it they will come.’ We’re going to be led by the customer.”

Her comments come after GM President Mark Reuss told CNBC in August that he was “flexible” regarding hybrids as a way of meeting federal regulations.

“If it means we have to do that by law, then we have to do that by law,” he said. “If there’s regulations that get dealt on us, then we’re going to look at everything in our toolbox to meet them.”

Federal regulations

Major auto companies, including the Detroit automakers, were counting on EVs to assist in offsetting the emissions and low fuel economies of larger SUVs and trucks that can cost them hundreds of millions of dollars in fines by the federal government.

GM and Stellantis were forced to pay a combined $363.8 million in penalties for failing to meet federal fuel-economy standards for cars and trucks they produced in previous years, according to information published by the National Highway Traffic Safety Administration in June.

Such fines would significantly increase under current proposals by the Biden administration to improve fuel efficiency of vehicles and move toward EVs, according to automaker lobbying groups.

The American Automotive Policy Council, a group representing the Detroit Three, earlier this year said the automakers would face more than $14 billion in noncompliance penalties between 2027 and 2032 barring significant changes to their fleets’ overall fuel efficiency. U.S. automakers have separately warned the fines would cost $6.5 billion for GM, $3 billion at Stellantis and $1 billion at Ford, according to Reuters.

NHTSA in July proposed boosting fuel efficiency requirements by 2% per year for passenger cars and 4% per year for pickup trucks and SUVs from 2027 through 2032, resulting in a fleetwide average fuel efficiency of 58 mpg.

With EVs playing a lesser role than anticipated to boost those fleetwide averages, hybrids could save automakers millions.

“Even without electric vehicles, there’s an expectation that electrification of an internal combustion engine is going to be necessary to meet regulations anyway,” said Stephanie Brinley, principal automotive analyst at S&P Global Mobility.

Industry leader

The resurgence of hybrids is especially important for Toyota. The world’s largest automaker is considered the pioneer of traditional hybrids, with the Prius.

The company ironically became a target of environmental groups last year for its strategy to move forward with a mix of hybrids, PHEVs and EVs, which critics viewed as a lack of commitment to an all-electric future.

Toyota’s argument at the time, and still, is that it’s meeting consumer needs and planning for a more gradual global adoption that will naturally include some markets shifting to EVs sooner than others.

The company further says it takes into account the entire environmental impact of producing EVs compared with hybrid electrified vehicles, arguing it can produce eight 40-mile plug-in hybrids for every one 320-mile battery electric vehicle and save up to eight times the carbon emitted into the atmosphere.

“People are finally seeing reality,” Toyota Chairman and former CEO Akio Toyoda, who has been heavily criticized for the slower approach on EVs, said in October regarding EVs, according to The Wall Street Journal.

Toyota CEO Akio Toyoda speaks during a small media roundtable on Sept. 29, 2022 in Las Vegas.

Toyota

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December 8, 2023

China’s transition to EVs is so fast that Volkswagen is on track for its worst local sales in years

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Volkswagen’s ID.7 is set for release in Europe and China in the fall of 2023, and in North America in 2024.

CNBC | Evelyn Cheng

BEIJING — Chinese brands are taking the lead in the country’s rapid shift to new energy vehicles, putting Volkswagen on track for its smallest year of China sales since 2012, according to CNBC analysis of public data for the first three quarters of the year.

The German auto giant isn’t alone in its struggles, according to CNBC’s analysis of 10 global car brands.

Nissan is on track for its worst year in the market since 2009, while Hyundai is set for its lowest sales since at least that time, CNBC’s analysis showed.

The declines come as China has rapidly transitioned away from internal combustion engines to new energy vehicles. It’s a rapidly growing market of battery and hybrid-powered cars which Tesla and homegrown brands such as BYD have captured.

In China, the world’s largest auto market, new energy vehicles have accounted for more than one-third of new passenger cars sold in the country so far this year.

That’s according to the China Passenger Car Association, which also predicts the local auto market will grow by 20% in November from a year ago.

While Volkswagen remains by far a giant in China’s car market with around 3 million vehicles sold a year, the German brand hasn’t gained much traction in the electric car space. In July, the company opted to invest about $700 million into Chinese electric car start-up Xpeng to jointly develop two cars for China.

BYD is quickly catching up. The Shenzhen-based company sold more than 1 million cars for the first time in 2022 and is on track for 2.5 million vehicle sales in China this year, CNBC found.

Toyota, which has struggled in the market transition to electric cars, is set for its worst year of overall China sales since 2020 with about 1.8 million vehicle sales, CNBC found.

The Chinese automotive industry is developing faster than the market’s growth rate, said Alvin Liu, an analyst at Canalys’ Shanghai office, responsible for global tracking and analysis of the new energy vehicle market.

He pointed out that at around 2 or 3 million in sales, BYD is set to capture a significant share of China’s 8.5 million-large new energy vehicle market. Liu also noted the potential for original equipment manufacturers, or OEMs, to compete via joint ventures with Chinese companies.

Foreign brands are becoming less popular with Chinese consumers as they consider electric cars. License plate restrictions in big cities such as Beijing incentivize locals to buy electric instead of traditional fuel-powered cars.

A Bernstein survey of more than 1,500 consumers in China in August and September found that BYD was the top brand that Chinese buyers of electric vehicles would consider. Tesla was next, followed by Nio.

When it came to preferences for the next car purchase, “except for Tesla, all foreign brands saw their brand traction scores declined year-on-year, of which Japanese brands’ (e.g. Toyota, Honda, Nissan) dropped most,” the report said.

“The younger population also saw declining interest in traditional non-German premium brands, and to a smaller degree, in German premium brands,” the report said.

The survey indicated some brand loyalty for German car brands. But not necessarily when it came to different sources of energy.

“Tesla is more attractive to current German and other premium brands’ owners as they make their switch to EVs,” the Bernstein report said.

Tough competition

Although China’s new energy market is growing quickly, competition is fierce, even for domestic brands.

BYD in July launched its most direct competitor to Tesla yet, the Denza N7, while also expanding beyond mass market cars into ultra-luxury with a 1 million yuan-plus (more than $138,000) price tag for a giant U8 SUV under its Yangwang brand.

“If this year was competitive, next year will be even more competitive,” An Conghui, head of Geely’s EV brand Zeekr, told reporters on Oct. 27 in Mandarin, translated by CNBC.

He was speaking after Zeekr’s launch of its luxury electric sports car, the 001 FR, with specs clearly meant to rival Tesla’s Model S Plaid — at a lower price.

An claimed that no car company would be able to replicate the 001 FR within five years.

Zeekr, which set a monthly delivery record in October with just over 13,000 cars in China, has aggressive expansion plans to sell in Europe and the Middle East in the next two years.

Entering the global market

BYD and other brands are also selling electric cars overseas.

This year, China is on track to become the world’s biggest exporter of cars, surpassing Japan and Germany, Moody’s analysis said in August.

In a sign of how big a force Chinese automakers are becoming abroad, the European Union in September launched an anti-subsidy probe into Chinese electric vehicle companies.

— CNBC’s Michael Bloom contributed to this report.

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November 16, 2023

GM is expected to invest $13 billion in U.S. facilities under new UAW deal

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United Auto Workers (UAW) members strike at a General Motors assembly plant that builds the U.S. automaker’s full-size sport utility vehicles, in another expansion of the strike in Arlington, Texas, October 24, 2023.

James Breeden | Reuters

DETROIT – General Motors plans to invest roughly $13 billion in U.S. facilities by April 2028, the United Auto Workers union said as part of its recent tentative agreement with the automaker.

GM has already announced some of the planned investments such as $4 billion at Orion Assembly in suburban Detroit and $2 billion in Spring Hill, Tennessee, for new electric vehicles. Others, such as $1.25 billion for a future electric vehicle plant at Lansing Grand River, are new.

Many of the new investments include hundreds of millions of dollars for assembly plants to support or add additional volume as well as engine and components plants.

Details of the tentative agreement were released Saturday after local UAW leaders with GM approved the pact, which must still be ratified by a simple majority of the union’s 46,000 members with the automaker. GM was the last Detroit automaker to reach a tentative agreement following Ford Motor and Chrysler-parent Stellantis.

GM’s U.S. investments through the terms of the 4 ½-tear tentative compared to $8.1 billion announced by the union at Ford and $18.9 billion at Stellantis, including $6.2 billion in previously announced parts plants in Kokomo, Indiana.

GM declined to comment on the released details, referring back to a statement by CEO Mary Barra when the tentative deal was initially announced: “GM is pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the U.S.,” she said. “We are looking forward to having everyone back to work across all of our operations, delivering great products for our customers, and winning as one team.”

The tentative labor agreement was announced Monday after roughly six weeks of targeted strikes by the union against GM, Stellantis and Ford, also known as the “Big Three” automakers. The work stoppages began on Sept. 15 after the sides failed to reach deals covering 146,000 UAW members with the automakers by a strike deadline.

“There’s a reason why the Big Three and their allies feel like they just got taken to the cleaners. This contract has wage increases and economic gains like nothing we’ve ever seen before, said UAW Vice President Mike Booth during an online broadcast Saturday. “The gains in this contract are worth more than four times the last contract.”

Like the UAW’s tentative agreement with Stellantis and Ford, the deal includes 25% pay increases, bonuses and other enhanced benefits for autoworkers, such as profit-sharing payments and a $5,000 ratification bonus.

The 25% raises include an 11% increase upon ratification, followed by a 3% bump-up in the next three years and then a 5% increase in September 2027.

At GM, the union also made major gains in cutting down different tiers, or levels, of workers to be paid the same or similar to their traditional colleagues at assembly plants. UAW President Shawn Fain said some workers will receive an immediate raise of 89% if ratified by members.

“One of our central goals in this round of negotiations was the elimination of tiers,” Fain said during the broadcast. “While we didn’t win everything, we made enormous strides at GM. We did more to eliminate wage tiers than any of the Big Three.”

New workers added to the agreement include employees at GM’s Ultium Cells joint venture for battery cells, Fain reconfirmed Saturday. The battery workers will receive a raise of between $6 and $8 an hour, he said.

UAW's Tesla push could push Musk into robotic car building faster, says Ross Gerber

Fain on Saturday reiterated the union’s plans to use the record contracts with GM, Ford and Stellantis as leverage to unionize other automakers.

“We aren’t bashful or quiet about what our plans are: Our goal is to spend the next few years organizing auto workers across this country,” Fain said. “The Big Three aren’t the only auto companies making record profits. Auto workers at Toyota, Honda, Volkswagen, Hyundai and Tesla, they deserve record contracts. too.”

Toyota Motor earlier this week announced plans to hike wages at its U.S. factories. The new rates would see hourly manufacturing employees at top rates in Kentucky receive roughly 9% pay increases to $34.80 an hour – still below the more than $40 an hour top rate under the UAW’s tentative agreements with the Detroit automakers.

UAW members at Ford have already started voting on that tentative agreement. Most notably, 82% of workers at Ford’s Michigan Assembly Plant voted in support of the pact this week. The suburban Detroit plant was among the first to strike alongside other assembly plants with GM and Stellantis.

UAW members with Stellantis and GM are expected to vote on the deals over the next couple of weeks.

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November 4, 2023

UAW has Tesla, Toyota in its sights after contract wins at Detroit automakers

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United Auto Workers President Shawn Fain gestures in solidarity with striking workers during a rally at UAW Local 551 on Saturday, Oct. 7, 2023, in Chicago.

John J. Kim | Tribune News Service | Getty Images

DETROIT – United Auto Workers President Shawn Fain wants to expand the union’s battle from the Detroit automakers to Tesla, Toyota Motor and other non-unionized automakers operating in the U.S.

The outspoken leader plans to use record contracts recently won after contentious negotiations and U.S. labor strikes with General Motors, Ford Motor and Chrysler-parent Stellantis to assist in the union’s embattled organizing efforts elsewhere.

“We’ve created the threat of a good example, and now we’re going to build on it,” Fain said Thursday night when discussing Stellantis’ tentative agreement. “We just went on strike like we’ve never been on strike before and won a historic contract as a result. Now we’re going to organize like we’ve never organized before.”

Doing so would greatly assist the union’s bargaining efforts and membership, which has been nearly halved from roughly 700,000 members in 2001 to 383,000 at the beginning of this year. UAW membership peaked at 1.5 million in 1979.

The UAW has previously failed to organize foreign-based automakers in the U.S. Most recently, plants with Volkswagen and Nissan Motor fell short of the support needed to unionize. The UAW has previously discussed organizing Tesla’s Fremont plant in California with little to no traction in those efforts.

It remains to be seen whether the recent efforts are gaining traction at any other automakers, but Fain has vowed to move beyond the “Big Three” — Ford, GM and Stellantis — and expand to the “Big Five or Big Six” by the time its 4½-year contracts with the Detroit automakers expire in April 2028.

The deals include 25% wage increases that would boost top pay to more than $40 an hour, reinstatement of cost-of-living adjustments, enhanced profit-sharing payments and other significant pay, healthcare and workplace benefits. The contracts must still be ratified.

The union has already received significant interest from non-union automakers in light of the tentative agreements, Fain said. And last month, he rejected comments from Ford Chair Bill Ford arguing the company and union should be working together to battle non-American automakers.

“Workers at Tesla, Toyota, Honda, and others are not the enemy — they’re the UAW members of the future,” Fain said.

Toyota

Fain has taken particular aim at Toyota in recent days.

The automaker earlier this week confirmed plans to hike wages at its U.S. factories. The new rates would see hourly manufacturing employees at top rates in Kentucky receive roughly 9% pay increases to $34.80 an hour.

Fain on Thursday called that pay raise “the UAW bump,” joking that UAW stands for “U Are Welcome” to join the union’s movement.

UAW President Shawn Fain marches with UAW members through downtown Detroit after a rally in support of United Auto Workers members as they strike the Big Three auto makers on September 15, 2023 in Detroit, Michigan.

Bill Pugliano | Getty Images

“Toyota isn’t giving out raises out of the goodness of their heart,” Fain said. “They could have just as easily raised wages a month ago or a year ago. They did it now because the company knows we’re coming for ’em.”

Toyota, which has 49,000 hourly and salaried U.S. workers, said the “decision to unionize is ultimately made by our team members.”

“By engaging in honest, two-way communication about what’s happening in the company, we aim to foster positive morale which ultimately leads to increased productivity,” the company said Friday in an emailed statement. “Working together has provided a history of stable employment and income for our team members.”

Tesla

The UAW has so far not been able to establish enough support to force an organizing vote at Tesla’s facilities, including its Fremont, California, plant where the union previously represented workers when it was a GM-Toyota joint venture.

Fain on Thursday told Bloomberg News he believes organizing Tesla and taking on CEO Elon Musk is “doable.”

“We can beat anybody,” Fain told Bloomberg. “It’s gonna come down to the people that work for him deciding if they want their fair share… or if they want him to fly himself to outer space at their expense.”

Still, Musk has historically clashed with union proponents.

As some workers sought to form a union at the company’s Fremont factory in in 2017 and 2018, Tesla was paying a consultancy named MWW PR to monitor employees in a Facebook group and on social media more broadly, as CNBC previously reported.

Elon Musk, CEO of Tesla and owner of X, arrives for the Inaugural AI Insight Forum in Russell Building on Capitol Hill, on Wednesday, September 13, 2023.

Tom Williams | Cq-roll Call, Inc. | Getty Images

Tesla also terminated the employment of a union activist named Richard Ortiz in 2017. And in 2018, Musk said in a tweet, “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?”

The tweet violated federal labor laws, the National Labor Relations Board later found.

An administrative court ordered Tesla to reinstate Ortiz and to have Musk delete his tweet, which it concluded had threatened workers’ compensation. Tesla appealed the ruling, and Musk’s offending post remains on the social media platform which Musk now owns, has rebranded as X and runs as CTO and executive chairman.

In February, a different group of organizers filed a complaint with the NLRB claiming that Tesla had fired more than 30 employees at its Buffalo facility in retaliation for a union push there by Tesla Workers United. Tesla called the workers’ allegations false, saying 4% of its Autopilot data labeling team in Buffalo had been terminated due to performance issues.

The Equal Employment Opportunity Commission, the federal agency responsible for enforcing civil rights laws against workplace discrimination, sued Tesla in September, alleging widespread racist harassment of Black workers, and retaliation against those who spoke out.

And in late October, just over 100 of Tesla’s service employees in Sweden, members of the industrial labor group IF Metall, walked off the job for a short strike. Hundreds of mechanics and technicians at non-Tesla shops also agreed not to repair any of the EV makers’ cars in solidarity. However, Tesla has so far refused to negotiate with IF Metall.

Tesla did not immediately respond to a request for comment.

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November 3, 2023

Forget the U.S: Pros say another top market looks cheap and offers the ‘best’ opportunities

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October 8, 2023

What China slowdown? Three Chinese companies making big money globally

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September 10, 2023

Automakers promote advanced tech to compete in China — the world’s top EV market

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An XPeng Inc. G9 electric vehicle at the Shanghai Auto Show in Shanghai, China, on Monday, April 24, 2023.

Qilai Shen | Bloomberg | Getty Images

Global electric vehicle makers are tapping advanced technology to vie with each other and domestic brands in the intensively competitive Chinese market.

China is the world’s largest EV market with 5.9 million units sold in 2022, capturing 59% of EVs sold globally, according to Canalys. Counterpoint Research data showed that domestic brands command 81% of the EV market, with BYD, Wuling, Chery, Changan and GAC among the top players.

“China’s domestic brands are leading the market in the development and implementation of advanced assisted driving systems, capitalizing on their early-entry advantages in the electric and intelligent vehicle sector,” research firm Canalys said in a recent report.

“These brands have an edge over other joint ventures in the planning and execution of smart assisted driving systems.”

BofA Securities in a May report said it expects China to still be the world’s largest EV market in 2025, standing at 40%-45% market share.

“China auto makers are accelerating vehicle platform, technology upgrade or innovation, leading to outstanding user experience. China EV products are much more competitive than before, and China will continue to see EV penetration expanding, in our view,” said the BofA Securities analysts.

But these global players are now stepping up their efforts.

On Friday, BMW China announced that it is accelerating the development of hands-free autonomous driving features, also known as Level 3 or L3 functions. BMW China said it plans to roll those out by end of 2023 or early 2024 and will ensure compliance with local regulations.

L3 autonomous driving has not been widely approved in China, though some companies including domestic EV maker Xpeng has been authorized to test the technology.

The Chinese market is growing at an unprecedented pace. Toyota will also work together as a group to reform how we work & think to survive in China.

Tatsuro Ueda

CEO of the China Region, Toyota

Last week, Germany’s Volkswagen Group said it is investing approximately $700 million in Xpeng and taking a 4.99% stake in the company.

“We are now accelerating the expansion of our local electric portfolio and at the same time preparing for the next innovation step,” Ralf Brandstätter, Volkswagen AG board member for China, said in a company statement.

Volkswagen and Xpeng will co-develop two new EVs that will incorporate its advanced driver-assist software for the Chinese market and aims to roll them out in 2026.

Intense competition

As Ford loses billions on EVs, the company embraces hybrids

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Ford Motor Co. displays a new 2021 Ford F-150 pickup truck at the Rouge Complex in Dearborn, Michigan, September 17, 2020.

Rebecca Cook | Reuters

Heads up, hybrid fans: Ford Motor is working on a whole bunch of new hybrid models.

“You’re going to see a lot more hybrid systems from us,” CEO Jim Farley said Thursday after the company reported second-quarter earnings that revealed widening losses on its electric vehicles unit.

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The comments run slightly counter to recent messaging from the Detroit automakers, which have touted the performance and popularity of all-electric favorites as the industry moves to meet EV targets. The hybrid hype, however, falls more closely in line with global hybrid leader Toyota, which has faced criticism for what some saw as resistance to the EV transition.

To be clear, Ford isn’t turning away from its much-touted EV push, though it said Thursday that its EV ramp-up may take longer than it had previously anticipated.

But even as it spends billions to ramp up EV production, it’s planning to bring more hybrid options to market – driven by the success of its current gasoline-electric options.

“We have been surprised, frankly, at the popularity of hybrid systems for F-150,” Farley said during Ford’s second-quarter earnings call. More than 10% of F-150 pickup customers are opting for the hybrid model, Farley said – and that percentage has been increasing.

Ford also offers a hybrid version of its small Maverick pickup. That has been an even greater success, Farley said, with more than half of Maverick buyers — 56% — choosing the $1,500 optional hybrid powertrain over the standard four-cylinder engine.

But why double down on hybrids just as the industry is making a big push toward pure EVs?

“What the customer really likes is when we take a hybrid system that’s more efficient for certain duty cycles and then we add new capabilities because of the batteries,” Farley said.

Among those new capabilities: Ford’s “Pro Power Onboard” system, which gives customers the ability to tap the truck’s electricity via outlets in the pickup bed to power tools at a job site — or a refrigerator at a tailgate party — eliminating the need to carry a separate generator.

An available 7.2-kilowatt onboard generator that Ford is calling the “Pro Power Onboard” features four 120V 20A outlets and one NEMA L14-30R 240V 30A on the 2021 Ford F-150. The truck is available with three levels of electrical output depending on engine choice.

Ford

“We’re seeing a lot of customers like that combination of using the batteries for something beyond just moving the vehicle,” Farley said. “And so we’re just listening to the market.”

Ford has heavily promoted the capabilities of its battery-electric F-150 Lightning pickup, which offers the ability to power an entire house for several days.

It may be that in hearing from customers, Ford has determined the popularity of that capability is outrunning the willingness to go all-electric. As executives noted Thursday, EV adoption is moving more slowly than expected.

So in the meantime, Ford can offer power-hungry but EV-wary drivers an in-between option, with hybrid options across its internal-combustion lineup.

“But don’t think of them in the traditional sense of an Escape hybrid or a [Toyota] Prius,” Farley said. “They’re probably going to come to light differently than most people think.”

“And customers like that.”

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July 28, 2023

Toyota’s stock rises after U.S. sales rise 15%, and EV sales were 26% of total sales

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The U.S.-listed shares of Toyota Motor Corp. TM JP:7203 rose 0.8% in morning trading Wednesday, said U.S. sales in June rose 14.9% from a year ago. The Japan-based automaker’s North America division (TMNA) reported it sold 195,448 vehicles in the U.S. in June, on a volume and daily-selling rate (DSR) versus June 2022, as Toyota-brand sales rose 1.4% to 168,680 vehicles and Lexus-brand sales jumped 18.1% to 26,768 vehicles. Sales of electrified vehicles total 51,535, or 26.4% of total monthly sales. For the first half of 2023, U.S. sales fell 0.7% to 1,038,520 vehicles, with electrified vehicle sales representing 26.0%…

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July 5, 2023

Toyota defies skeptics as stock seals best week since 2009

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Akio Toyoda, president and CEO of Toyota Motor Corp.

Kiyoshi Ota | Bloomberg | Getty Images

DETROIT – Toyota Motor stock sealed its best week since 2009 on Friday, as the automaker laid out a robust plan for future all-electric vehicles and company scion Akio Toyoda became leader of the Japanese company’s board.

Shares of Toyota on the New York Stock Exchange closed Friday at $164.35 per share, down 2.3% for the day but still up 10.6% on the week. That 5-day gain is the stock’s best week since April 2009 when shares increased 14.5%.

Such a rally is not typical for the stock. It’s only the third double-digit weekly gain in more than two decades for the relatively well-performing but mundane stock. Shares of the company are up 20% so far in 2023.

The positive uptick this year comes as recent supply chain problems ease for the automotive industry, including Toyota, and after Toyoda, grandson of the company’s founder, announced plans to transition from CEO to chairman after more than 13 years leading the automaker.

Toyoda, who left his post as chief executive on April 1 and was succeeded by Koji Sato, had faced criticism from some environmental groups and investors for not going all-in on EVs and continuing production of hybrids and plug-in hybrids such as the Prius and Prius Prime.

Toyota’s stock in 2023.

Toyota executives, while increasing investments in EVs, have argued such cars and trucks are one solution, not the solution, to meet tightening global emissions standards and achieve carbon neutrality.

To address skeptics of its strategy, the automaker this week in Japan offered a rare peek behind the curtain into its future plans.

“Management has only rarely announced the details of technology under development in the past, and we sensed commitment to ensuring competitive strength via electrification and intellectualization under the new management team,” JPMorgan analyst Akira Kishimoto said in an investor note this week.

Ahead of its annual meeting Wednesday, Toyota outlined plans for a new generation of EVs to rival industry leaders Tesla and China-based BYD. The company said it plans to launch its next-generation EVs starting in 2026, including vehicles with highly touted “solid-state batteries” by 2027 or 2028.

Solid-state batteries can be lighter, with greater energy density and provide more range at a lower cost than today’s EVs that run on lithium-ion batteries.

Takero Kato, president of Toyota’s battery electric vehicle factory, said that Toyota is targeting a driving range of 1,000 kilometers, or 620 miles, for its EVs. The facility aims to produce about 1.7 million vehicles by 2030, he said.

“A strategic focus on differentiation (in terms of technologies and business model) rather than scale in 2025-30 and the company’s strong ability to develop technologies toward this end are longer-term positives, in our view,” UBS analyst Kohei Takahashi said Tuesday in an investor note.

Following the announcements, Toyota shareholders on Wednesday approval the company’s new leadership and rejected a shareholder proposal requiring Toyota to review its climate-related lobbying activities — voting in alignment with company recommendations.

— CNBC’s Michael Bloom and Lim Hui Jie contributed to this report.

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June 16, 2023

Toyota stock having best week since 2009 after annual meeting, new EV goals

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Akio Toyoda, Chairman of Toyota Motor Corp.

Yoshikazu Tsuno | Gamma-rapho | Getty Images

DETROIT – Toyota Motor’s stock is having its best week since 2009 following the company disclosing plans for its next-generation electric vehicles and shareholders voting in favor of its new leadership, including former CEO Akio Toyoda as chairman.

Shares of Toyota on the New York Stock Exchange on Thursday achieved a new 52-week high before closing at $168.18 per share, up 1.6% during intraday trading and roughly 13% this week.

If shares can retain their current momentum, it would be the stock’s best week since April 2009 when they increased 14.5%. It would also mark only the third double-digit weekly gain in more than two decades.

The notable increase in the relatively mundane stock follows additional details about the company’s EV strategy, which has previously been criticized by some for not being aggressive enough.

Ahead of its annual meeting Wednesday, Toyota outlined plans for a new generation of EVs to rival industry leaders Tesla and China-based BYD. The company said it plans to launch its next-generation EVs starting in 2026, including vehicles with highly touted “solid-state batteries” by 2027 or 2028.

Solid-state batteries can be lighter, with greater energy density and provide more range at a lower cost than today’s EVs with lithium-ion batteries.

People arrive to attend an annual shareholders’ meeting for Toyota Motor in the city of Toyota, Aichi Prefecture on June 14, 2023. Toyota is under pressure from large institutional investors for chairman Akio Toyoda to step down over his lukewarm embrace of electric vehicles.

Str | Afp | Getty Images

Takero Kato, president of BEV Factory, said that Toyota is targeting a driving range of 1,000 kilometers (620 miles) for its EVs. BEV Factory aims to produce about 1.7 million vehicles by 2030, he said.

“Proactive disclosure of a new tech strategy featuring next-gen batteries and giga casting delivered a riposte to the view that it is lagging in BEVs. We await quantitative disclosure on BEV profit ahead,” Morgan Stanley analyst Shinji Kakiuchi said Wednesday in an investor note.

Following the announcements, Toyota shareholders Wednesday aligned their voting with company recommendations, including leadership approval and voting down a shareholder proposal requiring Toyota to review its climate-related lobbying activities.

Shareholders also approved the company’s new leadership and board, including the appointment of CEO Koji Sato as a director and Toyoda – grandson of automaker’s founder – as chairman.

Shares of Toyota on the NYSE are up about 23% this year, as the auto industry continues to recover from the coronavirus pandemic and supply chain issues that led to record low vehicle inventory levels.

Toyota’s gains put it in the middle of Japanese automaker stocks, ahead or in-line with the Detroit automakers and behind shares of Tesla, which have more than doubled in 2023.

Here’s how other automaker stocks have performed this year compared to Toyota:

Auto stocks so far this year

*Shares of these companies are traded in the U.S. as American depositary receipts.

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June 15, 2023

Toyota shares surge 5% after announcing plans for next-gen battery EVs

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A display of Toyota electrified vehicles at the 2022 New York Auto Show, April 13, 2022.

Scott Mlyn | CNBC

Shares of Japanese automaker Toyota spiked 5% Tuesday after the company announced it will introduce a full lineup of battery electric vehicles with “next generation” batteries from 2026.

These will be developed and manufactured by a new EV unit called BEV Factory, which was established in May.

In a presentation Tuesday, Takero Kato, president of BEV Factory, said that Toyota is targeting a driving range of 1,000 kilometers (620 miles) for its EVs. BEV Factory aims to produce about 1.7 million vehicles by 2030, Kato said.

In comparison, the Tesla Model 3 has a range of about 430 kilometers, while the long-range model has a range of about 570 kilometers.

Toyota has a goal of achieving sales of 1.5 million all-electric vehicles per year by 2026, and selling 3.5 million all-electric vehicles annually by 2030.

Separately, the company is also developing a method for mass producing all-solid-state batteries for battery electric vehicles, and aims to commercialize this in 2027 to 2028. Toyota said it will be looking at a 20% improvement in cruising range for its all-solid-state batteries, compared to the current batteries.

This is along with a higher-specification model that is under research and development. This model aims for a 50% improvement in cruising range compared to the current product.

More pronounced shift to EVs?

Most notably, Toyota said that it has discovered a technological breakthrough that overcomes the challenge of battery durability in its all-solid-state batteries, and as such, the company is “reviewing its introduction to conventional HEVs and accelerating [its] development as a battery for BEVs.”

HEVs refer to hybrid electric vehicles, which are vehicles that are powered by a conventional internal combustion engine in combination with one or more electric motors.

This could signal a continued shift in the automaker’s EV strategy under new CEO Koji Sato, who took over the helm in April. In February, Sato said that the company will “accelerate the development of BEVs with a different approach than before,” Nikkei reported.

Under previous CEO Akio Toyoda, Toyota had come under fire for its go-slow approach to all-electric cars, instead sticking with the belief that all-electric vehicles are one solution, not the solution, for the company’s goal to become carbon neutral. This strategy persisted even up to the end of 2022, when it unveiled new hybrid Prius models.

Toyota accepts union demands for biggest wage hike in two decades | CNN Business

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Tokyo
Reuters
—

Toyota Motor, the world’s biggest automaker, said on Wednesday it would accept a union demand for the biggest base salary increase in 20 years and a rise in bonus payments, as Japan steps up calls for businesses to hike pay.

As one of Japan’s biggest employers, Toyota

(TM) has long served as a bellwether of the spring labor talks, which are in full swing at major companies. Many are expected to conclude swiftly as the government seeks inflation-beating wage hikes to ease burdens on consumers.

The automaker’s incoming president Koji Sato said the decision to accept the union’s demands in full at the first round of talks was meant not just for Toyota but “also for the industry as a whole, and in the hope that it will lead to frank discussions between labor and management at each company.”

Within hours of Toyota’s announcement, rival Honda

(HMC) Motor said it had agreed to union demands for a 5% pay increase. The average monthly base salary rise of 12,500 yen ($92.70) at Honda

(HMC) is the biggest jump since at least 1990.

Toyota and the union federation representing 357,000 Toyota group workers said the base pay rise was the biggest in two decades, though they both declined to provide the percentage increase.

With inflation running at around 4%, the highest level in 40 years following decades of deflation, Japan is under more pressure than ever before to raise wages to revive consumption.

But with the economy struggling, it averted recession in the fourth quarter but grew much less than expected, analysts say pay increases will remain limited to big firms, such as Toyota.

Small and medium-sized companies, which employ most Japanese workers, will struggle to afford pay rises, they say.

Toyota said its wage increase would also apply to part-time workers and senior contract workers. It had agreed to union’s request for one-off bonus payments worth 6.7 months of wages.

Takaaki Sakagami, deputy secretary-general of the Federation of All Toyota Workers’ Union, said the union was pleased it had been able to reach a deal with the company quickly.

The pay agreement comes as Prime Minister Fumio Kishida has stepped up calls on business leaders to accelerate wage increases, warning of a return to stagflation if pay rises fall short of the rapid increase in prices.

“We will boost consumption and expand domestic demand by promoting efforts toward structural wage increases,” Kishida said at a lower house budget committee session on Wednesday.

Fast Retailing

(FRCOF), which owns clothing giant Uniqlo, last month said it would boost pay by up to 40%, fueling expectations big manufacturers would offer more at annual wage talks with unions this spring.

Video game maker Nintendo

(NTDOF) said earlier this month that it planned to lift workers’ base pay by 10%, despite trimming its full-year profit forecast.

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February 22, 2023

Toyota CEO and President Akio Toyoda to step down

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Akio Toyoda, president and CEO of Toyota Motor Corp.

Kiyoshi Ota | Bloomberg | Getty Images

Toyota Motor‘s president and chief executive, Akio Toyoda, will step down from his post on April 1, to be succeeded by current Chief Branding Officer Koji Sato, the Japanese automaker said Thursday.

Sato, 53, has been heading the Toyota Lexus division and the GAZOO racing company since 2020.

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Toyoda will become the new chairman of the board, while the current Chairman Takeshi Uchiyamada will continue as a member of the board.

Toyoda, 66, is the grandson of the carmaker’s founder and has served as chief executive since June 2009.

“I thought the best way to further Toyota’s transformation would be for me to become chairman in support of a new president, and this has led to today’s decision. Chairman Uchiyamada has long supported me in all imaginable ways,” Toyoda said in a translated webcast.

“In retrospect, these 13 years have been a period of struggling to survive one day after the next, and that is my honest feeling,” he added.

“The current Toyota structural change has been triggered by my resignation,” Uchiyamada said, stressing that he had been considering the timing of his retirement for “some time” to make way for a new generation.

“The foundation for passing the baton to the next generation has been laid,” he said.

“Cars in the future will evolve in the concept of mobility itself. Amid such, I hope to preserve the essential value of the car and propose new forms of mobility,” Sato said, adding that this represented the mission of the new leadership team.

Tokyo-listed shares of Toyota ended the session 0.63% lower Thursday ahead of the announcement.

A pioneer of green automobiles in 1997 with the introduction of its hybrid Prius, the company has increasingly fended off criticism over the pace at which it has pursued fully-electric vehicles, playing catch-up to newcomers such as Tesla.

In Dec. 2021, it announced plans to produce 30 EV models by 2030. A year later, in Dec. 2022, it said a consortium it leads secured funding to develop a hydrogen fuel cell pickup truck in the U.K.

Sato on Thursday acknowledged Toyota must continue its green efforts: “Energy security, for example, that is a big challenge that the whole planet needs to face. And also that the endeavor towards carbon neutrality will be one example of what we have to work on.”

— CNBC’s Jihye Lee contributed to this story

Correction: This article has been updated to reflect that Toyoda was referring to the company Toyota when discussing its transformation in the webcast. Sato has been heading the Toyota Lexus division. An earlier version misspelled the name of the division.

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January 26, 2023

Toyota pushes zero-emission goals by converting old models

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CHIBA, Japan (AP) — To accelerate the global move toward sustainable vehicles, Toyota is suggesting simply replacing the inner workings of vehicles already on the roads with cleaner technology like fuel cells and electric motors.

“I don’t want to leave any car lover behind,” Chief Executive Akio Toyoda said Friday, appearing on the stage at the Tokyo Auto Salon, an industry event similar to the world’s auto shows.

The message was clear: Toyota Motor Corp. wants the world to know it hasn’t fallen behind in electric vehicles, as some detractors have implied.

Japan’s top automaker, behind the Lexus luxury brands and the Prius hybrid, is highlighting its clout: It has all the technology, engineering, financial reserves and industry experience needed to remain a powerful competitor in green vehicles.

Toyoda told reporters it would take a long time for all the cars to become zero emission, as they only make up a fraction of the vehicles being sold. Changing old cars to go green, or “conversion,” was a better option, he said.

Toyoda, the grandson of the company founder and an avid racer himself, was also hoping to debunk the stereotype that clean cars aren’t as fun as regular cars.

At Toyota’s Gazoo Racing booth, the maker of the Lexus luxury models and Camry sedan showed video of its triumph at world rallies, as well as the battery-electric and hydrogen-powered versions of the Toyota AE86 series including the Toyota Corolla Levin, to underline what Toyoda called its “conversion” strategy.

The auto industry is undergoing a transformation because of growing concerns about climate change. Automakers are often blamed as the culprits.

Toyoda said ecological efforts in the auto industry were starting to be appreciated in many nations, but he felt less appreciated in Japan.

Toyota has dominated the industry with its hybrid technology, exemplified in the Prius, which has both an electric motor and gasoline engine, switching back and forth to deliver the most efficient ride. That has often been seen as reflecting its reluctance to go totally electric.

Battery electric vehicles make up about 20% of the auto market, despite the hullabaloo about relative newcomers like Tesla and even Dyson. Europe remains ahead of the U.S. and Japan in the move toward electric.

And so is it unfair to categorize the Japanese automakers as green laggards?

For one, the scarcity of certain components like lithium could drive up the prices of EVs, and consumers may stick with hybrids, says Matthias Schmidt, chief auto analyst at Schmidt Automotive Research.

“If this was 2025, and you asked that same question, I would say the Japanese OEMs have missed the boat. But seeing it’s 2023, and the likes of Toyota are beginning their BEV roll-out, their timing is likely bang on schedule,” he said.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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January 13, 2023

Tag: Toyota Motor Corp

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