Electric cars: Toyota’s plan to stop the advance of Tesla and Chinese brands

The announcement coincides with the consolidation of the tycoon’s Tesla brand Elon Musk and the advance of Chinese automotive companies, such as BYD, very strong in the development and sales of cars “plug-in”

Koji SatoCEO of Toyotaconfirmed that the brand is in productive creation process, whose estimated capacity is 3.5 million electric vehicles by 2030.

This plan does not imply overinvestment since the brand hopes to be able to generate gigantic production without the need to unshield its economy.

Area 35 also aims to accelerate the production of the brand’s vehicles, that is, greater production in a shorter time. The result is efficient and fast delivery to end customers, thus almost instantly covering the needs of the automotive market and increasing net profits by 3.5% by 2030, respectively.

“Area 35 is an initiative aimed at freeing up space by reducing the number of parts used in existing facilities instead of expanding the production area by building new facilities,” said the brand manager.

Toyota also reported that the first steps of the so-called ‘Area 35’ project are already being implemented in some of its Japanese plants, and as a consequence, offer an increase in production of 80,000 vehicles by the end of the year.

What does the ‘Area 35’ project consist of?

The ‘Area 35’ project includes reduce the number of parts used in your vehicles by up to 80%, in order to simplify said production and lower the costs of its cars. This, in turn, will accelerate product development and accelerate product production, which will result in a greater number of models manufactured in the same period of time.

“We are working to optimize the number of […] parts. This allows us to adapt more effectively to changes in real demand and make last-minute investment decisions. “We are preparing to intelligently build a system that can flexibly adapt to the decisions of our clients,” he noted a few days ago. Yoichi Miyazaki, executive vice president and chief financial officer of Toyota.

Toyota’s strategy comes in a moment of crisis for the industry. The CEO of Stellantis, a group with 14 brands in its possession, resigned, amid disparities with its Administrative Council. Volkswagen is considering opening its factories to manufacturing vehicles from other brands, and General Motors cut 1,000 jobs globally.

This project, reported by Automotive News, involves renovating the company’s manufacturing plants. Unlike companies like Volkswagen, which built factories exclusively for the production of electric cars and now have problems employing their employees, Toyota aims to improve the efficiency of its land.