Akio Toyoda’s Skepticism Towards Electric Vehicles and Its Impact on Toyota

Akio Toyoda, the CEO of Toyota and grandson of Kiichiro Toyoda, who started the auto division of the family business, has been vocal about his skepticism towards electric vehicles (EVs) and the rush to decarbonization. He has questioned the environmental benefits of EVs and highlighted the potential negative impact on the auto industry and jobs. Despite being a leading manufacturer of hybrids, Toyoda has expressed doubts about pursuing EVs exclusively. He believes that EVs may not be the only solution and that other options should be considered. However, his skepticism has faced criticism, and there have been calls for his removal as chairman of Toyota due to concerns about the company’s governance. Some shareholders and proxy advisory firms, such as Glass Lewis, have supported these calls, citing the need for more independence in the company’s board. This push against Toyoda reflects a broader trend of progressive investors using corporate governance to advance their political goals. Despite the pressure, Toyota remains committed to offering a range of electrified powertrains, including hybrids, plug-in hybrids, all-electric, and fuel cell electric vehicles, to provide consumers with choice. The company has set a sales target of 1.5 million EVs by 2026. While the debate about the future of EVs continues, Toyoda’s skepticism highlights the challenges and complexities of transitioning to electric mobility.