Toyota and Environmental Friendly Vehicles

Toyota recognizes that finding ways to limit the impact of the cars on the planet would be the key success factor for the auto industry and would account for its survival on the long run.

As a concrete response, Toyota introduced Prius, the hybrid car, which has an almost zero emission, burns less fuel, and releases less greenhouse gases in the atmosphere, which are the ones responsible for the climate change. In 2004, Prius was the fastest selling car in America, and Toyota doubled the production in 2005 as a response to a high demand. Improving fuel efficiency, reducing emissions of CO2, make exhaust emissions cleaners and limiting the use of fossil fuels are few concrete items that Toyota is exploring in order to gain a competitive advantage in the market.

Toyota took the initiative to diversify energy sources by introducing bioethanol-compatible vehicles. They have the necessary technology to allow all gasoline engines to run reliable with 10% bioethanol content. I think, this is a response of a various researches in the world regarding using alternative fuels. One such kind of research was undertaken by Iogen Corporation, an Ottawa based Biotechnology Company that produces EcoEthanol, which is a clean, zero-net-CO2-emission fuel that can be used in cars.

I do believe that through its policies and visions, Toyota has built a culture and a long term strategy that is leading to Corporate Social Responsibility and Sustainable Development, which would account for company’s success.
References:
http://www.toyota.com/about/environment/news/images/01envrep-all.pdf
http://www.toyota.co.jp/en/news/06/0613.html
http://www.iogen.ca/
Sergiu Buhatel

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Posted in sustainable technologies
5 comments on “Toyota and Environmental Friendly Vehicles
  1. Jason Charron says:

    By being a leader in building cleaner cars Toyota has in fact shown leadership in reducing carbon emissions. The next step for Toyota is to competitively price these vehicles so they can compete with traditional vehicles…only then we’ll see true market penetration and customer adoption…

  2. jeremy says:

    The Prius – once you take account of reduced fuel costs – is probably already price competitive. The Iogen work sounds very interesting, but please also read Chapter 2 in Natural Capitalism on this topic.

  3. Jean-Francois Goubet says:

    I totally agree with your statement. toyota has become The leader regarding efficient cars. However, with a price that I believe too high, not a lot of these cars are on the streets. I wish the government could do something (subsidy) to allow mid-class customers to buy that kind of car instead of high poluting american cars. By acting like that, every government could demonstrate its commitment to the sustainable development.

  4. Sergiu Buhatel says:

    This is new technology and I think adopting it goes into stages. Think about iPod as a similar new technology and how was adopted.
    The demand is there, I think it is limited only on the capacity of the plants to produce such cars. Prius is already there for a while, such that “early adopters” are the ones who buy it, besides the “innovators” in the initial stage. Can you imagine what could be the demand in the “early majority” or “early majority” stage? (“innovators” = 2.5%, “early adopters” = 13.5%, “early majority” = 34%, “late majority” = 34% and laggards = 16%)
    Given the fact that this is a new technology, it is normal to have a premium price versus the old technology. I would expect in the future that Toyota will provide a diversified set of hybrid cars (to catch more market share) and also to reduce the price due to the economy of scale and due to efficiency gained in producing them. However, on the other side, as Jeremy mentioned, the car is not that expensive given the gas savings that it provides.

  5. Ron says:

    Jean-Francois, you forgot to include European car makers such as BMW, Porsche and Land Rover.

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