If EVs become the only choice in the market, it could leave 5.5 million workers without a job, claims Toyota chairman Akio Toyoda
by Sam D. Smith
October 12, 2024 at 09:43
- Toyota’s Chairman, Akio Toyoda, warns of significant consequences for Japan’s auto industry in an EV-only future.
- He predicts that 5.5 million jobs, including positions within Toyota’s supply chain, could be endangered.
- Toyoda reaffirmed his support for gasoline vehicles, expressing doubts about fully transitioning to electric-only options.
Toyota Chairman, former CEO, and founding family member Akio Toyoda has always been forthright about his views on EVs. While the Japanese automaker has been reserved about its commitment to an all-electric future, trying to toe the line between alternative fuels, hybrids, and EV adoption, Toyoda has gone on record before saying the push by governments and manufacturers towards banning ICE vehicles was shortsighted.
Now, the Toyota chairman has predicted that if an EV-only future is on the horizon, the automotive sector, especially those working in ICE tech, will lose millions of jobs. He made these remarks during an event at Nagoya University in central Japan, where he was unveiling a bust of his father, Shoichiro Toyoda.
A Threat to Jobs and Suppliers
“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 Toyoda. “If electric vehicles simply become the only choice, including for our suppliers, those people’s jobs would be lost.” According to Reuters, Toyoda followed up these comments by reaffirming his preference for gasoline vehicles.
Related: Toyota Slashes EV Production Target By 33%, Report Says
Toyoda’s comments echo similar remarks he’s made over the years. In addition to predicting industry job losses, the Toyota chairman has also blasted politicians for their push for EVs and claimed that Japan would run out of electricity in the summer if all vehicles were electric. Instead, Toyoda advocates for a more balanced path toward carbon neutrality, one that includes hybrids and cleaner internal combustion engine vehicles.
Toyoda’s outspoken stance hasn’t proven to be a popular one in the past. During his tenure as CEO of Toyota, the company was ranked as the third most obstructive company towards government efforts to curb climate change. Earlier this year, his most recent reelection as chairman was objected to by some investors who feel his outlook is flawed.
Toyota Thrives Amid an EV Slowdown
Despite the controversy, Toyota is currently reaping the benefits of a slowing EV market. While the share of EVs continues to grow, the rate at which it does so has seen a significant slowdown, prompting other automakers such as Ford, GM, and Volvo to reassess their previously EV-heavy strategies. Toyota, on the other hand, is selling more cars than any other manufacturer in the US, largely thanks to its robust (and growing) range of hybrid offerings.
