Annual Report 2008

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Annual Report 2008 Special Feature—Sustainability in Three Areas Sustainability in Three Areas Technology Manufacturing Society Contributing to Sustainable Development of Society and the Earth Since its establishment, Toyota’s fundamental philosophy has been to contribute to the creation of a prosperous society by manufacturing automobiles. Today, given the critical risk that the automotive industry faces unless global environment and energy issues are resolved, we are dedicated to the development of vehicles that can coexist in harmony with the Earth. We believe that the key words to contribute to the sustainable development of society and the Earth are “Sustainability in Three Areas”: “research and development,” “manufacturing,” and “nurturing society.” We are working to satisfy the needs of both environmental preservation and economic growth. Eventually, we hope to contribute to the realization of a prosperous, low-carbon society. 20 TOYOTA • Annual Report 2008 • Performance Messages from the Management & • Overview • Management • Special Feature • Business Overview • Corporate Information • Financial Section • Investor Information • Technology Achieving Sustainable Mobility Technological innovations hold the key to the environmental preservation and economic growth that are essential for us to contribute to a prosperous society and the Earth. Accordingly, Toyota is conducting research and development aimed at the realization of an automotive society that can coexist with the Earth, or Sustainable Mobility. Automotive Society Issues and Toyota’s Vision for Future Based on the vision of “Zeronize & Maximize,” Toyota aims to minimize the negative impact that vehicles have on the environment, while maximizing their positive aspects, such as convenience, comfort, enjoyment, and excitement. Trends and Forecast of World Energy Demand by Fuel Under the above concept, we are conducting research and development focused on the themes of the “environment,” “energy,” “safety,” and Crude oil equivalent (Million tons) “excitement.” 20,000 Considering the themes of the environment and energy, we believe that 17,721 2% these are the three major issues that must be addressed simultaneously with 9% 15,000 2% respect to automobiles: 14,361 5% 1. Supporting alternative energy sources; 11,429 22% 2 2. Reducing CO emissions (as a measure to counter global warming); and 10,000 3. Improving air quality. 8,755 Since fossil fuels are finite resources, it is imperative we use various 32% alternative energy sources. Accordingly, we need to determine the 5,000 appropriate energy sources for vehicles’ practical use as well as develop power trains that are compatible with them, while also reducing CO2 28% emissions and ensuring cleaner exhaust emissions. 0 CY 1990 2005 2015 2030 Targeting the realization of an ultimate eco-car, Toyota has long pursued (Actual) (Actual) (Forecast)( Forecast) research and development of conventional gasoline and diesel engines, as Renewable energy, etc. well as power trains that are compatible with such various energy as biofuel, Biomass energy, etc. Hydroelectric power electricity, and hydrogen. Of these technologies, since hybrid technology Nuclear power can be applied to all types of power trains, we have positioned it as a core Natural gas Oil technology and are aggressively pursuing its development. Introducing these Coal R&D results in products, we are taking a multifaceted approach to providing Source: Agency for Natural Resources and “the right vehicle, at the right time, in the right place.” Energy (Japan) Scenarios for Response to Environmental and Energy Issues Hybrid technology Plug-in hybrid technology Oil Gasoline and diesel fuel Gasoline and diesel fuel (fr(fromom conventional oil fields) (from deep-sea oil fields, Drilling/refining technology/cost oil-shales, etc.) Natural gas Gas storage Build infrastructure technology Gas Internal Gasification/ combustion synthetic CO2 reduction technology engine Coal Synthetic fuels technology (during production of fuel) (GTL/CTL/BTL) Obtain desirdesireded Technology propertiesproperties utilizing Stabilize supply Bioethanol Biomass cellulose /biodiesel Electrical storage Infrastructure technology development Electrical storage Electricity for PHVs and EVs Electricity EV Nuclear energy generation technology for EV CO2 reduction technology HydrHydrogenogen storage (thermal power station) Hydro, technology CO2 reduction technology Solar, and Hydrogen (during hydrogen Hydrogen FCHV production production) Geothermal energy Infrastructure development 2010 2030 • Annual Report 2008 • TOYOTA 21 Special Feature—Sustainability in Three Areas Improving Environmental Performance » Improving Fuel Efficiency and Reducing CO2 Emissions With respect to power trains, by 2010 we will have installed in all our vehicles a new series of gasoline and diesel engines and transmissions to boost fuel efficiency. In addition, we are currently increasing efforts to further evolve hybrid technology and expand our hybrid lineup. Improving fuel efficiency and reducing CO2 emissions requires smaller and lighter vehicles. One response to smaller vehicles is the iQ iQ, ultra-efficient ultra-efficient package vehicle, scheduled to launch in 2008 in Japan and packaging like no other Europe. The iQ offers a spacious cabin capable of seating four passengers, yet the body of the vehicle is less than three meters long. At the 2007 Tokyo Motor Show, we also demonstrated our future vision for weight reduction vehicles in the 1/X concept car. This concept car embodies all of the weight- saving and environmentally friendly technologies that we believe need to be incorporated into all future vehicles. 1/X, a redefinition of “environmentally considerate” Gasoline Engines Diesel Engines With respect to gasoline engines, we Regarding diesel engines, providing a have incorporated cutting-edge wide lineup from 1.4-liter to 4.5-liter, electronic control and other technologies, Toyota’s cumulative production of diesel lowered fuel consumption and exhaust engines reached 20 million in February emissions for cleaner operation, and 2008, while it has been promoting clean improved combustion efficiency to ensure diesel engines particularly in the superior engine performance. In 2008, we European market. In addition, we have will complete the renewal of our gasoline New 2.5-liter made a significant contribution to cleaner Diesel engine with a DPNR engine lineup with the introduction of gasoline engine exhaust gas through the development of new 1.3-liter and 2.5-liter engines. The the world’s first Diesel Particulate—NOx new 1.3-liter engine features the newly Reduction System (DPNR). This system developed Toyota Stop & Start System, features technology that simultaneously an improved version of the Toyota reduces the emissions level of specific Intelligent Idling Stop Systemapplied to particulate matter (PM) and nitrogen the Vitz launched in 2003. This innovative oxide (NOx) in exhaust gas. The system contributes to improving fuel application of such advanced efficiency and reducing CO2 output by technologies reduces CO2 emissions automatic stalling the engine when the and ensures cleaner exhaust gas. car is stopped. Toyota is Contributing to the Currently, almost all vehicles run on gasoline or diesel oil because petroleum is Realization of a Sustainable readily available and is an economical energy source with an exceptionally high Mobility Society energy density. Sustainable alternative energy sources to petroleum that can help alleviate the problems of CO2 emissions include biofuels, electricity, and hydrogen. There are, however, many issues that need to be addressed before these energy Masatami sources can be utilized for vehicles. This is why, I believe, there is a need to take Takimoto advantage of the strengths of each energy source, and create the framework for a new sustainable transportation system, or Sustainable Mobility society. Executive Vice A Sustainable Mobility society could consist of new types of personal mobility President systems as a means of transportation, and a new public transportation system, in addition to small EVs, biofuel PHVs, FCHVs, and so on. Each system and vehicle has its own pros and cons. I, however, believe that each will have a role to play according to its respective characteristics. Toyota is committed to continuing to devote its full resources to realize a Sustainable Mobility society. 22 TOYOTA • Annual Report 2008 • Performance Messages from the Management & • Overview • Management • Special Feature • Business Overview • Corporate Information • Financial Section • Investor Information • Toyota Hybrid Technologies Progress in Average Fuel Efficiency for all Toyota Vehicles (passenger cars) Over the 10 years since we first launched the Prius in 1997, the fuel efficiency 1.4 (’97 value = 1.0) of all Toyota vehicles sold in Japan has improved by an average of 1.3 approximately 28%. This is the result of improved fuel efficiency in both gasoline and diesel vehicles, and increased hybridization. 1.2 28% improvement for 1.1 average fuel efficiency of all Toyota vehicles sold in Japan over the Hybrid Vehicles 1.0 past 10 years Toyota’s core technology, its hybrid the 2010s. Achieving this goal requires a 0.9 system, contributes to everything from drastic improvement in hybrid system CY ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 cleaner emissions and lower CO2 performance and fuel efficiency. We will emissions to increased fuel efficiency. continue to develop high-performance As such, we are implementing
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