Shift to Electric Vehicles May Threaten Jobs

NAGOYA, Japan (Reuters) – A shift to an electric vehicle-only future could lead to job losses for those involved in engine-related technologies, including many suppliers in the sector, said Akio Toyoda, chairman of Toyota Motor (NYSE:TM), on Thursday.

"There are 5.5 million people involved in the automotive industry in Japan. Among them are those who have been doing engine-related work for a long time," Toyoda told reporters.

"If electric vehicles simply become the only choice, including for our suppliers, those people's jobs would be lost," he remarked, adding that he personally favors gasoline vehicles.

Toyota, the largest automaker in the world by sales, has approached EVs more cautiously than competitors. This strategy currently benefits the company as global EV sales decline, allowing it to capitalize on demand for its expanding hybrid lineup, particularly in the U.S.

The company advocates for a "multi-pathway" strategy towards zero-carbon emissions, which includes electric vehicles, hybrids, hydrogen fuel-cell vehicles, and other powertrain technologies.

In January, Toyoda projected that EVs would only account for a maximum of 30% of the global auto market, with hybrids, hydrogen fuel-cell, and fuel-burning vehicles making up the remainder, although he did not specify a timeline for this projection.

These comments were made during the unveiling of a bust of his father, Shoichiro Toyoda, at Nagoya University in central Japan. The elder Toyoda, who passed away at age 97 last year, led Toyota during the 1980s, a period during which the company transformed the global auto market and launched the luxury Lexus brand and the Prius hybrid.