Automotive News Europe - Talk From The Top Supplement - December 2019 - 37

AUTOMOTIVE NEWS EUROPE

TALK FROM THE TOP

gets get tougher?
We will definitely stay in that segment of
the market. It's been a very good product for us. It brings young people to our
brand. At some stage we will replace it
[the Aygo].
Will you need to electrify it?
We have to think about the future and
ask: How will we ensure that we have
an electrified version of an A-segment
(minicar) or sub A-segment car that we
will be able to utilize for cities?
The Lexus UX is doing well and sits on
your global TNGA platform. Could you
also build the car in Europe?
I think it would be very difficult to localize.
You would need to do a proper localization of componentry, not just assembly.
Otherwise, you just transfer parts from
one country to another. The volumes are
not sufficient to justify it.
What volume is needed to localize?
In my opinion, 100,000 units.
When will Toyota sell more plug-in hybrids and EVs than traditional hybrids
in Europe?
Even by 2030, our hybrids will still be
a core technology and part of our core
product mix. They will be enriched by
plug-in hybrids and battery-electric cars.
Fuel cell vehicles will also form part of
the zero-emissions mix in future.
Toyota was one of the first automakers to offer a plug-in hybrid with Prius, but that car hasn't gained much
traction with buyers. Why?
From a style point of view, from a car
point of view, the Prius plug-in will not
get strong traction with European buyers. But we are looking at other plug-in
hybrids, for example, some of our SUVs.
Next year, we will launch some plug-in
hybrids. [Toyota launched a plug-in hybrid RAV4 at the Los Angeles auto show
in November.]
With so many threats to achieving
sustainable margins, what do automakers need to do to stay profitable
in the future?
My personal view is that in a few years
people are not going to buy cars they
will just lease them. That doesn't necessarily mean sharing with somebody else.

2019

In Partnership with

Toyota Europe boss van Zyl believes a plug-in hybrid version of one
of the automaker's SUVs will have more success than the Prius plugin hybrid (shown).

at all areas of marketing. How do you get
a good return on marketing investment
and keep growing the brand? That goal
What are the consequences of makisn't to cut marketing expenses, but to
ing the shift to leasing?
make sure you spend where you get a
To share in that profit stream you must good return.
be able to finance it. So, you will need
a very strong balance sheet in the fu- When it comes to Brexit, how big an
ture to be able to cover this. That is the issue are the rules of origin for Toyota.
same with future mobility models such Will you be able to reach the percentas car-sharing. Those cars are not sold. age of local content needed to satisfy
You need to finance those costs until you free trade agreements?
have recovered your money. The cash- Rules of origin are very important. That is
to-cash cycle just gets longer and longer. not just between the EU and the UK but
between the members of the European
The most recent Toyota annual report
customs union, such as Turkey. The UK
talked about reduced expenses. What
will have to create the relationships with
reductions have you made?
those countries so that we can still imIn the ACE1000 plan that launched in port parts tariff free and that those parts
2015 we identified 11 areas we could should qualify for rules of origin.
change to create a much more sustainable business. It's not just cost Which is the percentage of locally supcutting. Cost cutting is not a strategy. plied parts for the UK-built Corolla?
It's also about how we can improve our It is 30 percent.
revenue stream and the value that we
Toyota launched the new-generation
give our customers.
Mirai fuel cell car at the Tokyo auto
Which of the changes that you made show. What is your European sales
goal for the new car?
had the biggest impact?
First you need to look at the product The infrastructure is not developed sufitself, starting with the manufacturing ficiently enough for us to be able to sell
side. How can we reduce in-house costs? thousands of them. We are, however,
How can we make efficient utilization of definitely going to sell many more than
human resources. Outsourcing parts the first one [614 units]. Our idea is to
ANE
made a big contribution. We also looked sell 30,000 globally.
It just means you get exclusive use of it,
but you lease instead of buy.

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Automotive News Europe - Talk From The Top Supplement - December 2019

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