Making Ever-better Cars: A Progress Report (2024)

"Sudden and drastic changes in the business environment mean that conventional ways of thinking and doing business can no longer help us grow sustainably. We are at a crossroads where we must now build a new business model."

- Toyota President Akio Toyoda

New powertrain components

Powertrain components are at the heart of all vehicles. Their development needs to be coordinated with that of vehicle platforms, which form the basic structure of all vehicles. To enhance driving performance and fuel efficiency while also giving vehicles more attractive styling and improved handling, Toyota is focusing on joint development of powertrains and platforms together to create a lower center of gravity, on making components lighter and more compact, and on applying unified design through modularization. By improving thermal efficiency in engines and energy-relay efficiency in transmissions, Toyota has increased the overall fuel efficiency of its powertrains by approximately 25 percent and overall power output by more than 15 percent. Also, by rethinking drive unit layout and making electric motors, inverters and batteries smaller, Toyota expects to improve the overall fuel efficiency of its hybrid vehicle systems by more than 15 percent. Toyota will begin introducing its new powertrain units this year, and will continue to develop innovative new hybrid systems, transmissions and engines.

New vehicle platforms

Toyota has developed new platforms through innovative improvements to its vehicle underbodies and suspensions. Additionally, repositioning and lowering the center of gravity of powertrain components has contributed to achieving attractive, low-stance designs, responsive handling, a high-quality drive feel, and collision performance that offers safety and peace of mind. By rethinking body structure, Toyota plans to first increase overall body rigidity by as much as 30 to 65 percent, and then further improve rigidity by joining body components using laser screw welding technology. Toyota will begin rolling out its new platforms with the launch of a midsize front-wheel-drive vehicle this year, followed by specific new platforms for front-wheel-drive compact and large vehicles, as well as for rear-wheel-drive vehicles. Toyota expects approximately half of its vehicles sold worldwide in 2020 to feature the new platforms.

Fully using existing plants and facilities

Since 2013, Toyota has been increasing the versatility of its production lines, linking production of same-model vehicles across multiple plants and steadily increasing operational availability to make thorough use of even the smallest capacity surpluses at each plant. Toyota has subsequently increased its total global load factor (line utilization rate) to more than 90 percent from approximately 70 percent in 2009.

Reducing investment needed to produce new models

This year, Toyota is aiming to reduce the amount of capital investment required to prepare a production line for a new model by approximately 50 percent compared to 2008 levels. This work also covers the production of new engines, transmissions and related components.

Although rolling out new TNGA platforms and powertrain components will temporarily require increased production line investment, investment requirements are still expected to result in lower investment levels than those required in 2008. And, because TNGA's strategic sharing of parts and components allows multiple platforms and powertrain components to be added to a line for mixed production, Toyota will be able to respond flexibly to changes in demand and achieve significant reductions in overall production line investment.

Increasing plant competitiveness

Toyota is combining the results of its work to increase plant competitiveness with the mindset and technologies accumulated by making ever-better cars in the field of production engineering. Toyota aims to break the mold by creating production sites that are competitive and built for sustainable growth.

Toyota is now approaching the point at which it can expect to reduce initial plant investment by approximately 40 percent compared to 2008 levels. The main contributors include measures to achieve "simple and slim" production lines, such as downsizing painting-booth facilities and switching to compact equipment that can be installed on top of plant floors. By contrast, current plants often require large equipment that needs to be suspended from ceilings or fixed into the plant floor. This reduction in required investment frees up resources.

Also, by making plants more environment friendly through improved energy management, Toyota expects to reduce plant CO2 output by up to 55 percent.

Through these combined projects, Toyota aims to shift to plants that are always competitive, rather than plants that depend on volume.

Making ever-better cars in the field of production engineering

Toyota is using the resources gained through its investment-reduction initiatives to further improve product appeal in the field of production engineering. Production engineering initiatives, with new technologies already finding their way onto a number of mass-production vehicle models, include revolutionizing forming technologies to allow the production of highly stylish components and developing more-advanced welding technologies for greater body rigidity.

Presentation Given by Executive Vice President Mitsuhisa Kato

Presentation Given by Senior Managing Officer Hirofumi Muta