Current
Condition
Operations
Philosophy
M
and.
L.ong-Term
Vision
Electric
vehicles
with
autopilot
Self-driving
electric
Automate
everyplace
possible
vehicles
Semiautomatic
Treat
cars
like
computers
High-speed,
production
line
Achieve
Elon
Musk
vision
automated
Cool
cars
Innovative
engineers
execute
production
lines
customers
love!
No
compromise
Solar
roofs
Growing
production
Home
battery
footprint
storage
Note:
Highly-simplified
view
of
Tesla
strategy
Figure
14.2
Tesla’s
disruptive
strategic
vision.
Source:
James
Morgan
and
Jeffrey
Liker,
Designing
the
Future
(WEAG
T
REE
LA
NI
IR
Tesla’s
strategy,
as
I
can
intuit
it,
is
straightforward
(see
Figure
14.2).
Create
a
dis-
ruptive
computerized
product
powered
by
a
self-renewing
power
system
made
with
a
disruptive
computerized
factory.
Tesla’s
ultimate
purpose
is
to
help save
the
planet
through
100
percent
renewable
energy.
It
is
clear
Elon
Musk
cares
deeply
about
humanity
and
has
a
long-term
vision
greater
than
short-term
profits.
Anyone
who
in
any
way
diminishes
the
accomplishments
of
Tesla
is
not
paying
attention—it’s
the
first
automotive
startup
since
Chrysler
that
looks
like
it
will
survive
and
even
prosper,
bringing
to
life
a
whole
product
family
of
all-electric
vehicles
and
making
them
cool,
dominating
sales
of
battery
electric
cars
globally,
achieving
a
market
capitalization
greater
than
that
of
established
automakers
many
times
its
size,
and
causing
all
exist-
ing
players
to
scramble
to
compete.
Toyota’s
strategy
is
more
complex
and
subtle
and
is
fitting
of
Toyota’s
situation.
Toyota
has
been
at
its
best
as
the
determined
tortoise,
step-by-step,
carefully
evaluat-
ing
each
step.
Historically,
Toyota
wanted
to
hold
about
80
percent
of
vehicle
design
constant
from
established
model
to
new
model,
while
focusing
on
key
innovations
in
the
other
20
percent.
Toyota
has not
been
the
leader
in
vocalizing
a
commitment
to
battery
electric
vehicles,
though
it
is
rushing
a
bunch
to
market
as
I
write
this,
with
some
based
on
a
joint
e-platform
with
a
nine-company
consortium
including
Subaru.
Toyota
is
moving
toward
all-electric
vehicles,
but
sees
for
itself
a
more
extended
tran-
sition
period
where
hybrid
and
plug-in
hybrid
sales
will
continue
for
years,
taken
over
later
by
a
combination
of
battery-electric
and
hydrogen-powered
vehicles
(Figure
14.3).
These
may
occupy
different
niches,
for
example,
with
hydrogen
focused
on
larger
commercial
vehicles.
.
.
Mid-Term
Challenge
2050
Environmental
Condition
Cpantng
Ficeopty
(2025-2030)
Challenge*
Gas-engines
i
5.5
million
electrified
i
90%
reduction
Gas-electric
hybrids
vehicles
(1
million
of
new
vehicle
Phugrin
hybrids
PN
them
zero
emission)
CO;
emissions
Hydrogen
fuel
cells
£
Reduced
CO.:
5|
vs.
2010
Advanced
safety
:
35%
vehicles
technologies
et
25%
total
life
cycle
Lean
development
35%
less
plant
CO,
TPS
&Toyota
Way
J
0
life
cycle
emissions
Plant
zero
Autonomous
&
safety
O
isionE
technologies
Simple,
slim,
flexible
%
*
New
vehicle
zero
C,O
emissions,
life
cycle
zero
C,O
emissions,
plant
zero
C,O
emissions,
minimum
water
usage,
100%
recycling,
future
society
in
harmony
with
nature
Note:
simplified
view
of
Toyota
strategy
See
https://global.toyota/en/sustainability/esg/challenge2050/
Figure
14.3
Toyota’s
environmental
strategic
vision
and
operating
philosophy.
Source:
James
Morgan
and
Jeffrey
Liker,
Designing
the
Future
(New
York:
McGraw-Hill,
2018).
Even
with
the
rising
popularity
of
battery-only
vehicles,
Toyota
decided
someone
had
to
take
the
lead
on
hydrogen,
so
in
2014
the
company
launched
the
Mirai
(mean-
ing
“the
future”),
and
later
Toyota
made
hundreds
of
its
hydrogen
patents
open
and
free
to
anyone.
Interestingly,
the
Mirai
is
a
hybrid
with
a
battery
and
electric
motors
alongside
the
fuel
cell.
Toyota
realized
that
the
first-generation
Mirai
would
sell
in
small
quantities
(10,000
total),
as
it
was
expensive
and
the
refueling
infrastructure
was
limited
to
just
a
few
places.
Since
then,
the
company
has
made
major
investments
in
hydrogen
infrastructure
on
its
own
and
working
with
governments
and
other
com-
panies
such
as
Shell.
Toyota
announced
the
2021
Mirai
as
a
luxury
sedan
with
sleek
styling
and
a
longer
range
of
400
miles.
Toyota
anticipates
sales
of
30,000
-
b
first
year.
The
company
is
also
working
with
subsidiary
Hino
on
a
commerc
——
with
a
heavy-duty
hydrogen
fuel
cell.
Battery
efficiency
and
cost
have
progressed
at
a
remarkable
rate
but
hay
remained
heavy
and
expensive
and,
as
of
2020,
in
limited
supply.
In
2019,
(
Killmann,
Toyota’s
vice
president
of
research
and
development
for
Europe,
explained
