Job losses with EV push
The chief executive of Toyota Motor Corporation has expressed concerns about the Japanese government’s push for carbon neutrality.
Akio Toyoda says going all-electric could cost Japan some 5.5 million jobs and about eight million units of lost vehicle output by 2030.
Toyoda, pictured, made his views known at a meeting of the Japan Automobile Manufacturers’ Association, of which he is chairman and at which he was joined by top executives from Honda, Yamaha and Isuzu.
The government aims to slash Japan’s greenhouse gas emissions by 2030 and reach net-carbon neutrality by 2050 by going all-EV.
However, Toyoda believes the road map should account for the reality that Japan’s economic lifeblood stems from manufacturing.
He says a sudden shift to EVs could undercut the country’s industrial base, so he proposes a wider approach to carbon reduction instead.
“Japan is an export-reliant country, so carbon neutrality is tantamount to an issue of employment,” says Toyoda.
“Some politicians are saying we need to turn all cars into EVs or that the manufacturing industry is an outmoded one.
“But I don’t think that is the case. To protect the jobs and lives of Japanese people, I think it is necessary to bring our future in-line with our efforts so far.”
He notes Japanese marques produce about 10 million vehicles a year at home with around 50 per cent being exported.
He highlights forecasts projecting that by 2030 domestic plants will still be making eight million vehicles a year equipped with internal combustion engines (ICEs), including hybrids and plug-in hybrids.
Once those vehicles are banned, carmakers will take a big hit, Toyoda says, leaving companies with a tough decision – send production of such car overseas or end it entirely.
“This means that production of more than eight million units would be lost and the automotive industry could risk losing the majority of 5.5 million jobs. If they say ICEs are the enemy, we would not be able to produce almost any vehicles.”
When it comes to offering solutions, Toyoda argues the path to carbon neutrality should be adapted to each country’s conditions.
Specifically, there should be more freedom on which technologies are used to get there, as long as the result is the same – and that’s an overall reduction in emissions.
“In achieving carbon neutrality, the enemy is carbon dioxide [CO2] and not internal combustion. To reduce CO2 emissions, it is necessary to have practical and sustainable initiatives in-line with different situations in various countries and regions.”
Unsurprisingly, Toyoda says hybrids still have significant contributions to make towards carbon neutrality even though they have ICEs. That’s because hybrids are more affordable than EVs and can penetrate markets where charging infrastructure is non-existent.
