In a move that could shake up the auto world, Akio Toyoda, Chairman and former CEO of Toyota, has lashed out at the widely held belief that electric vehicles (EVs) are the magic cure for so called climate change.
Speaking at the Japan Mobility Show in Tokyo, Toyoda argued that the waning interest in EVs shows that people are starting to realize these vehicles aren’t the environmental saviors they’re often portrayed to be.
“People are finally seeing reality” about EVs, said Toyoda, who stepped down as Toyota’s CEO earlier this year amid criticism that he wasn’t moving quickly enough toward electric cars.
Now, as head of the Japan Automobile Manufacturers Association, Toyoda feels his caution is justified.
“There are many ways to climb the mountain that is achieving carbon neutrality,” he said, suggesting that the public has been sold a too-simple tale that puts EVs on a pedestal while ignoring their drawbacks.
Toyoda’s statements come at a time when the electric car market is showing signs of a slowdown.
According to Canalys, a market research firm, global sales of EVs increased by 49% in the first half of this year, a drop from the 63% growth rate seen last year.
This slowing trend is causing some companies to pump the brakes on their electric vehicle plans.
For example, Honda and General Motors (GM) recently announced they are scrapping a joint $5 billion plan to develop electric cars.
In an Oct. 24 earnings call, GM’s Chief Financial Officer Paul Jacobson went a step further.
The company is “moderating the acceleration of EV production to protect our pricing, adjust to slower near-term growth in demand and implement engineering changes that will bolster profits,” he said, revealing that a prolonged strike by auto workers had already cost GM $800 million.
Likewise, Ford has decided to cut back on production shifts at a plant that makes its electric F-150 Lightning pickup truck, following a slowdown in its EV roll-out back in July.
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