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Electric vehicle revolution threatens livelihoods of 5.5 million automotive workers in Japan, Toyota chairman cautions

The chairman of Toyota Motor Corporation, Akio Toyoda, has warned the auto industry. He hinted that the widespread adoption of EVs will eradicate about 1 million jobs involved in engine technologies. In a press briefing on October 10, Toyoda gave a hint of the possibilities laid out for the 5.5 million car industry workforce in Japan, especially for individuals who have spent much of their working lives focused on internal combustion engines.

“There are 5.5 million people involved in the automotive industry in Japan. Among them are those who have been doing engine-related (work) for a long time,” said Aikido Toyoda. He expressed concern that if electric vehicles become the sole option for consumers, including the many suppliers that support the industry, “those people's jobs would be lost.” Toyoda also revealed his personal preference, stating simply, “I liked gasoline vehicles.”

Compared to its rivals, Toyota, the global market leader in automobile sales, has been less enthusiastic about EVs. This has put the company on a favourable outlook as the sales of electric vehicles around the world start to stagnate. Hence, Toyota is meeting strong demand not only for electric powertrains but for its growing hybrid line-up, especially in its largest market, the United States.

The company has supported what it terms a “multi-pathway’’ approach towards attaining the objective of zero carbon emissions. This plan does not only include electric-only vehicles, but also hybrids, hydrogen fuel-cell vehicles, and other powertrain solutions. This means Toyoda has been able to focus on the diversification of the company’s product portfolio rather than relying on electric vehicles alone.

In January this year, Toyoda stated that EVs would account for as much as 30% of the global auto market with hybrids, hydrogen fuel-cell vehicles and gasoline and diesel burners making up the rest. However, he never included a time horizon to this projection, thus suggesting that the change may not be seamless as some players thought it would be.

These comments from Toyoda come at a sensitive period in the history of the Toyoda family, as he recently unveiled a bust of his father, Shoichiro Toyoda at Nagoya University in central Japan. The elder Toyoda, who died early last year at the age of 97 years, was central to Toyota’s process of becoming one of the major automobile manufacturers in the world during the 1980s. In his tenure, he threatened America’s auto giants in Detroit and created products of immense magnitude like the luxury Lexus brand and the revolutionary Prius hybrid.

The argument over what type of vehicles get developed is not just one of technological evolution but of employment opportunities for millions in the auto industry. When the automakers are going through such transformations, the information from such leaders as Akio Toyoda will contribute to defining the future of the car industry that is fully sustainable and inclusive.