Toyota to build a new company to develop electric vehiclesNovember 23, 2016
Automaker is creating a new venture in order to establish a stronger foothold in clean transportation
Japanese automaker has announced official plans to create a new, in-house venture company. The new company will be dedicated to the development of new electric vehicles. Toyota has already been working on this plan for some time, as the automaker believes that the venture company will begin operations at some point in December of this year. The offshoot company is part of Toyota’s plan to focus more heavily on electric vehicles equipped with batteries.
Hydrogen fuel cells are losing steam with Toyota
The automaker has been showing strong support for hydrogen fuel cells in recent years. The company believes that these energy systems could be a very valuable tool for the auto industry, helping many companies accomplish their clean transportation goals. The problem, however, is that hydrogen fuel cells are very expensive and they lack any comprehensive infrastructure support. By comparison, batteries are less expensive and already benefit from a relatively extensive infrastructure that allows drivers to charge their vehicles easily.
New company is currently comprised of a four-person team
Currently, Toyota has only assigned four people to be a part of its new company. These people have been pulled in from different sectors within Toyota’s larger business structure. The team will make use of “unconventional work processes” in an effort to accelerate the development of new electric vehicles. Toyota will be providing the team with access to a wide array of tools and research, allowing them to operate effectively as they work to improve Toyota’s standing with electric vehicles.
Electric vehicles become a greater focus for Toyota
Precise details concerning Toyota’s future electric vehicles have not yet been revealed. Industry analysts predict that the first of Toyota’s new electric vehicles will be launched in 2020. Analysts also expect that these vehicles will accompany a new generation of Toyota’s popular Prius model. Despite a growing focus on electric vehicles, Toyota will not be abandoning hydrogen fuel cells. The automaker plans to continue supporting fuel cell technology, as fuel cells could become a very important tool for the auto industry in the near future.