{"id":11454,"date":"2016-11-05T00:40:39","date_gmt":"2016-11-05T04:40:39","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/toyota-is-japan-out-innovating-the-us\/"},"modified":"2016-11-05T00:40:39","modified_gmt":"2016-11-05T04:40:39","slug":"launch-of-the-toyota-mirai","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/launch-of-the-toyota-mirai\/","title":{"rendered":"Launch of the Toyota Mirai"},"content":{"rendered":"<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-14276 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211-300x169.jpg\" alt=\"toyota-news-2014-toyota-mirai-focus_tcm-3044-276211\" width=\"426\" height=\"240\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211-768x432.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211-1024x576.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211-600x338.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/toyota-news-2014-toyota-mirai-focus_tcm-3044-276211.jpg 1600w\" sizes=\"auto, (max-width: 426px) 100vw, 426px\" \/><\/a><\/p>\n<p>Toyota&#8217;s operations have been fundamentally affected in two main ways by climate change:<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Changing consumer preferences:<\/strong><\/span><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-14277 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart-300x157.jpg\" alt=\"gas-chart\" width=\"420\" height=\"220\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart-300x157.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart-768x403.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart-1024x537.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart-600x315.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/gas-chart.jpg 1493w\" sizes=\"auto, (max-width: 420px) 100vw, 420px\" \/><\/a><\/p>\n<p>As an automotive producer, Toyota is vulnerable to the fluctuations in the price and supply of fossil fuels. Higher and more variable costs of fuel for vehicle operation, in addition to other factors such as worsening urban air quality, have been increasingly influencing consumers to favor lower-carbon automotives.<\/p>\n<p>In addition, states such as California are increasing the tax rate imposed on traditional gasoline, causing cost-conscious consumers to look even more to alternative-fuel vehicles [1].<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Emissions regulations and recent industry scandals:<\/strong><\/span><\/p>\n<p>Tougher greenhouse gas emissions regulations is also challenging Toyota and the rest of the automotive industry. These regulations include:<\/p>\n<ul>\n<li>US Congressional mandates for automotive manufacturers to reach an average of 54.5 miles per gallon per vehicle by 2025 [2]<\/li>\n<li>Zero-emission regulations, like the one in California that\u00a0mandates 4.5% of sales come from cars that have zero emissions. If an automaker surpasses this benchmark, the credits can be banked and sold to other automotive manufacturers for a profit [3]<\/li>\n<\/ul>\n<p>In addition, in 2015, the Japanese government announced subsidies for hydrogen fuel-cell vehicles and for the development of hydrogen fueling stations across the country (California has committed to building stations as well) [4].<\/p>\n<p>Lastly, the Volkswagen diesel-emissions cheating scandal has resulted in intensified scrutiny of auto emissions, and \u00a0the collective outrage that resulted can be taken to demonstrate\u00a0that consumers are caring more about violations of emission regulations nowadays than ever before.<\/p>\n<p>&nbsp;<\/p>\n<p>Toyota is responding to these shifts in two major ways:<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Doubling down on commitment:<\/strong><\/span><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11416 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12-300x149.png\" alt=\"capture\" width=\"368\" height=\"183\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12-300x149.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12-768x382.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12-600x298.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-12.png 773w\" sizes=\"auto, (max-width: 368px) 100vw, 368px\" \/><\/a>Toyota is extremely committed to driving sales of its fuel-efficient\/alternative-fuel vehicles (including gas-electric hybrids, plug-in hybrids, fuel-cell cars, and electric vehicles) &#8211; in fact, it hopes that sales of traditional gasoline- and diesel-engine cars will be near zero by 2050. As Senior Managing Officer Kiyotaka Ise said in late 2015,<\/p>\n<blockquote><p>&#8220;It won&#8217;t be easy for gasoline and diesel cars to survive&#8230;it&#8217;s like the world is turning upside down and Toyota has to change its ways.&#8221; [5]<\/p><\/blockquote>\n<p style=\"text-align: left\">In addition, Toyota has committed to a 2050 global environmental challenge to eliminate carbon emissions in all of its operations, not just from the cars that they sell.<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Focusing on innovation:<\/strong><\/span><\/p>\n<p><span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-1-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11447 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture-1-1-300x209.png\" alt=\"capture-1\" width=\"330\" height=\"228\" \/><\/a><br \/>\n<\/strong><\/span>Toyota is trying to position itself as one of the foremost innovators in using technology to reduce harmful greenhouse-gas emissions. In 2015, Toyota started selling the Toyota Mirai, a hydrogen fuel-cell car that emits only water, plus has a longer driving range than other competitor alternative-fuel vehicles. As mentioned above, these fuel-cell vehicles will help Toyota earn emission credits under California and US regulations [5]. While the company is positioning itself well in this new environment, there is one main way\u00a0that Toyota can continue to do better:<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Build out supporting infrastructure:<\/strong><\/span><\/p>\n<p>Adoption of fuel-efficient cars has been gradual and slow &#8211; Toyota can speed up the rate of adoption by investing more into building out the supporting infrastructure, primarily charging and filling stations for electric and hydrogen vehicles. Lack\/scarcity of this infrastructure has prevented consumers from adopting these vehicles on a large scale.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-14275 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1-300x138.jpg\" alt=\"map\" width=\"378\" height=\"174\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1-300x138.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1-768x353.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1-600x276.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/map-1.jpg 959w\" sizes=\"auto, (max-width: 378px) 100vw, 378px\" \/><\/a><\/p>\n<p>Currently, there are significant hurdles to fuel-cell vehicles becoming a viable options for mass-market consumers. There are only a handful of hydrogen refueling stations in the US, mostly on the West Coast [6].<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Improve affordability:<\/strong><\/span><\/p>\n<p>The Toyota Mirai is also cost prohibitive to the vast majority of would be consumers. Toyota&#8217;s mid-sized gasoline sedan known as the Corolla in the United States, comes with a suggested price tag of $18,500, and sold an estimated 363,000 units in the United States, and more than 1.3 million world wide. The Mirai retails for more than 3 times a Corolla and has far fewer fueling options. For the Mirai to gain wide-spread acceptance both of these factors will need to be mitigated. [7]<\/p>\n<p>[710 words]<\/p>\n<p><em>References:<\/em><\/p>\n<p>[1] &#8220;California Passes Toughest Greenhouse Gas Emission Curbs&#8221;,\u00a0<em>Bloomberg,\u00a0<\/em>2016\u00a0http:\/\/www.bloomberg.com\/news\/articles\/2016-08-24\/california-passes-toughest-greenhouse-gas-emission-curbs<\/p>\n<p>[2] &#8220;Obama Administration Finalized Historic 54.5 MPG Fuel Efficiency Standards&#8221;, Whitehouse.gov, 2016\u00a0https:\/\/www.whitehouse.gov\/the-press-office\/2012\/08\/28\/obama-administration-finalizes-historic-545-mpg-fuel-efficiency-standard<\/p>\n<p>[3] &#8220;What is California&#8217;s Zero Emission Vehicle (ZEV) Regulation?&#8221;, UCSUSA, 2016\u00a0http:\/\/www.ucsusa.org\/clean-vehicles\/california-and-western-states\/what-is-zev#.WB1cOPorI2x<\/p>\n<p>[4] &#8220;Toyota Accelerates Rollout of Fuel-Cell Cars&#8221;,\u00a0<em>The Wall Street Journal<\/em>, 2014\u00a0http:\/\/www.wsj.com\/articles\/toyota-accelerates-rollout-of-fuel-cell-cars-1403700630<\/p>\n<p>[5]\u00a0&#8220;Toyota Maps Out Decline of Conventionally Fueled Cars&#8221;,<em> The Wall Street Journal, <\/em>2015\u00a0http:\/\/www.wsj.com\/articles\/toyota-maps-out-decline-of-conventionally-fueled-cars-1444824804<\/p>\n<p>[6] California Fuel-Cell Partnership, 2016 http:\/\/cafcp.org\/stationmap<\/p>\n<p>[7] Auto Guide, 2016 http:\/\/www.autoguide.com\/auto-news\/2016\/01\/top-10-best-selling-cars-in-the-world-for-2015.html<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Toyota&#8217;s operations have been fundamentally affected in two main ways by climate change: Changing consumer preferences: As an automotive producer, Toyota is vulnerable to the fluctuations in the price and supply of fossil fuels. Higher and more variable costs of [&hellip;]<\/p>\n","protected":false},"author":2267,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[217,1622,1218,1305,1096],"class_list":["post-11454","hck-submission","type-hck-submission","status-publish","hentry","category-auto","category-climate","category-climate-change","category-hydrogen-cars","category-toyota"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Launch of the Toyota Mirai - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/launch-of-the-toyota-mirai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Launch of the Toyota Mirai - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Toyota&#8217;s operations have been fundamentally affected in two main ways by climate change: Changing consumer preferences: As an automotive producer, Toyota is vulnerable to the fluctuations in the price and supply of fossil fuels. 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