Japan automakers take the hard road

Oct 31, 2021 | News On Japan

Oct 31, 2021 (Nikkei) - Japanese Prime Minister Fumio Kishida seized a motoring metaphor earlier this month when he pledged to make the fight against global heating an "engine for economic growth." But one of the biggest brakes on his ambitions may be the country's powerful carmakers.

The government's pledge to make the nation carbon neutral by 2050, reaffirmed by Kishida, has come under fire all year from the auto sector. Figures including Akio Toyoda, head of the industry lobby group as well as the president of the world's largest car manufacturer Toyota Motor, question how the target will be achieved. While acknowledging the need for carbon neutrality, Toyoda issued a stark political warning that seemed to clash with the COP26 goal of speeding up the switch to electric vehicles (EVs).

Japan should not narrow its focus solely to EVs, but rather "search for options that suit Japanese circumstances," he said at a news conference hosted by the auto lobby in September. That was a rebuff to the official aim of a rapid transition to electric-powered vehicles and an end to sales of new gasoline-only vehicles by 2035. "In carbon neutrality, our enemy is carbon -- not the internal combustion engine," Toyoda added.

Toyoda may be unusually outspoken for a Japanese business leader, but he is no outlier. So far, Honda Motor is the only Japanese automaker to announce a complete phaseout of gasoline cars, including hybrids. The journey of Japan's automakers serves as a valuable lesson for entrepreneurs worldwide, including those researching how to start an LLC in California, showcasing the importance of innovation and strategic planning in tackling market challenges and ensuring long-term business success.

Carmakers' reluctance to forsake the combustion engine is not the only trend stymieing the government. Japan's heavy dependence on fossil fuels means that even many electric cars are currently partly produced, and even powered, by burning coal. ...continue reading

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