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Toyota’s Game Changing CEO Decision Surprises All
Akio Toyoda, who has served as president and CEO of Toyota for many years, recently announced his intention to retire. He will be succeeded as president and CEO of the world’s largest carmaker by Koji Sato, who was in charge of Lexus.
The Japanese corporation announced the reorganization, announcing that Toyoda would be appointed chairman of the board and Sato would take over daily administration. The alterations are scheduled to go effective on April 1.
However, just days before the New CEO takes over, he made some startling announcements. So, what is the New CEO planning? And will Toyota keep up with the race for BEVs?
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A BEV unit requires a battery and a wheel and break system, a hybrid BEV that utilizes gasoline, hydrogen, or another energy source requires components that convert the energy source into electricity. Hybrids and ICE vehicles all use a significant amount of additional moving parts that will increase consumer maintenance expenses over time. If you purchase a non-all electric vehicle that is the same price as the BEV unit, then your overall cost for the life of the vehicle will be more than 20% above the battery only competitor even if the energy fuel expense is the same, because the maintenance expense of the moving parts will be significantly higher. A non-BEV unit must be at least 40% below in retail price to compete with a BEV in overall cost and value. Since most new ICE cars are within 20% of the price of an all electric auto price, they are not a good value and you will be spending much more than you expect.
People were surprised to realize that buying a fifty thousand dollar Tesla was comparable in cost to purchasing a thirty thousand dollar Toyota when holding both vehicles over five years due to fuel and maintenance expenses higher for Toyota, but other competitor vehicles had significantly worse comparisons to Tesla cost analysis. Why are most auto manufacturers losing the battle to survive? Because the dealership network is broken with price gouging and a portion of the profit margin is given to the sales channels.
This is my opinion and experience, since, I do own both vehicles and several others over the years. If you own your own source of electricity for local travel, you face much less cumbersome interaction with fuel problems.
Kodak moment for Toyota . . .