At Toyota’s annual dealership gathering in Las Vegas last fall, attendees were treated to an exclusive breakfast, with strict instructions to cover their cellphone cameras with red stickers. The guest speaker was Stephen Ciccone, Toyota’s top lobbyist, who delivered a powerful message about the auto industry’s current state of affairs.
Ciccone warned that the industry was facing an existential crisis, not due to economic factors or fuel prices, but because of proposed stricter tailpipe pollution limits in the United States. In a memo circulated among Toyota dealerships and reviewed by The New York Times, Ciccone expressed that these rules were detrimental to the country, consumers, and the auto industry.
Despite the challenges, Toyota remained steadfast in its opposition to the proposed regulations, particularly those focusing on battery-electric vehicles (BEVs). The company’s stance was clear – they would not back down in the fight against what they deemed unrealistic mandates.
Recently, the Environmental Protection Agency finalized tailpipe emissions rules, requiring car makers to meet stringent new average emissions limits. These regulations were aimed at combating climate change and were considered some of the most significant in U.S. history. However, the final rules were more favorable to hybrid cars, a market segment where Toyota holds a dominant position.
Toyota’s strong advocacy for hybrids was a notable shift for a company that once led the way in clean cars with the Prius. Despite the rise of electric vehicles and the push towards electrification in the industry, Toyota continued to champion hybrids and hydrogen-powered vehicles over battery-electric cars.
In response to the E.P.A.’s rules, Toyota maintained that providing consumers with a variety of choices was crucial to reducing carbon emissions effectively. The company’s lobbying efforts and strategic messaging emphasized the importance of flexibility in meeting regulatory standards.
Toyota’s approach garnered support from dealerships, which played a key role in spreading the message and mobilizing efforts against rapid electrification. The company’s dealers were involved in a letter-writing campaign urging caution on electric vehicles, which ultimately reached President Biden’s desk.
Despite some controversy surrounding the dealership letter, Toyota stood by its position and continued to advocate for hybrids over electric vehicles. The company’s investment in electrifying its fleet, including hybrids and electric cars, underscored its commitment to offering a diverse range of vehicles to consumers.
As the industry grappled with the transition to cleaner technologies, Toyota’s focus on hybrids and its efforts to supply other automakers with hybrid technology positioned the company as a leader in the space. While debates around the environmental impact of hybrids versus electric vehicles persisted, Toyota remained steadfast in its belief that hybrids were the way forward.
Overall, Toyota’s unwavering stance on hybrids and its strategic lobbying efforts showcased the company’s commitment to navigating the changing landscape of the auto industry while staying true to its core values and priorities.