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Chapter 9 Product development

Chapter 9 Product development

Toyotas R&D activities focus on environment, vehicle safety, information technology and product development. The companys research and development expenses (included in cost of products sold and selling, general and administrative expenses) totalled JPY725bn during fiscal 2010. Toyotas environmental research and development activities focus on a number of key areas. The key focus area is developing light-weight and more fuelefficient engines and transmissions. These technologies include improved technologies in fuel economy, emission, and performance, such as the development of next-generation direct injection system and variable valve system for gasoline engines and the development of the next-generation ultra high pressure common rail system and the diesel particulate and nitrous oxide reduction system for diesel engines. Another major area of crucial importance is developing alternative fuel powering systems for commercial sale. This includes developing hybrid vehicles and fuel cell hybrid vehicles. Furthermore, Toyota is also working on the development of alternative fuels for vehicles fueled by compressed natural gas and liquid petroleum gas, as well as for flexible fuel vehicles that run on bioethanol and gasoline which are recently drawing a lot of attention. The company has also been conducting a wide range of research and study on alternative fuel such as biofuel, including cellulose ethanol and hydrogenized bio-diesel, and utilizing it in developing alternative-fuel vehicles. One of the other crucial areas is engaging in recycling activities that take into account the lifecycle (development, manufacture, use, disposal) of a vehicle. In this regard, the research and development activities focuses primarily on developing materials that are suitable for recycling and designs and research on effective dismantling technology of end-of-life vehicles and use of shredder residue. Moreover, Toyotas work in the area of vehicle safety is focused on the development of technologies designed to prevent accidents in the first instance, along with the development of technologies that protect passengers and reduce the damage on impact in the event of an accident. Safety technologies in development include: research on protecting diverse passengers, including

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Chapter 9 Product development

senior citizens, autonomous driving support systems, including frontal crashprevention support systems, and data exchange driving-support systems using advanced communication technologies. In May 2010, Tesla Motors and Toyota announced intention to cooperate on the development of electric vehicles, parts, and production system and engineering support. Further in July 2010, Tesla and Toyota signed an agreement to initiate the development of an electric version of the RAV4. With an aim to market the EV in the United States in 2012, prototypes will be made combining the Toyota RAV4 model with a Tesla electric powertrain. Tesla plans to produce and deliver a fleet of prototypes to Toyota for evaluation within 2010. The first prototype has already been built and is undergoing testing. In March 2010, Toyota introduced the five-door hybrid Lexus CT200h at the 80th Geneva Motor Show. The company plans to launch the CT200h in Japan in early 2011.

In January 2010, Toyota introduced a concept version of the Etios at the 10th Auto Expo held in Delhi, India. The Etios is a compact car developed in particular for the Indian market. The company will produce the Etios from late 2010 at its second plant in India, which is being built specifically for the new car.

In December 2009, Toyota introduced the Prius Plug-in Hybrid in key markets.

In November 2009, Toyota introduced the Tacoma TX package concept, developed for the 2009 SEMA show. Toyota used a 2010 Tacoma PreRunner SR5 as the base vehicle for the modification project. In September 2009, Toyota introduced the 2010 Venza. It is the first Toyota passenger car to provide the STAR Safety System as standard equipment for all models. The Venza has standard iPod connectivity, a USB port for connecting an auxiliary music source and Bluetooth wireless technology on all audio systems. Also in the same month, the 2010 Toyota Prius plug-in hybrid (PHV) concept vehicle made its debut at the Frankfurt Motor Show. It is based on the third generation of the Prius. The PHV Concept expands Toyotas Hybrid Synergy Drive technology, making use of first generation lithium-ion battery technology.

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Chapter 9 Product development

In December 2008, Toyota and Daihatsu introduced a seven-seater compact vehicle with three rows of seats for sale in Japan under the Toyota brand as Passo Sette and under the Daihatsu brand as Boon Luminas. The car is manufactured at Daihatsus Kyoto plant. The monthly sales target for Japan is 3,000 units for Toyota Passo Sette and 500 units for Daihatsu Boon Luminas.

In April 2008, Toyota established the Toyota Research Institute of North America (the TRI-NA), a specialized institute in advanced research within the Toyota Technical Center in North America. The TRI-NA aims to strengthen Toyotas advanced research efforts in North America, while enhancing interaction with North American universities and research organizations. During FY 2008/09, Toyota introduced new cars in Japan including the iQ, PASSO Sette, Lexus RX450h, Lexus RX350 and IS250C. Also, re-modeled cars were introduced in Japan including the Alphard (of which, the Alphard V was remodeled and newly introduced as the Vellfire), the Crown Majesta, the Wish and the Prius. New cars introduced outside Japan during fiscal 2008/09 include the Venza introduced in North America in December 2008, the iQ and the Urban Cruiser introduced in Europe in January 2009 and April 2009, respectively. While the re-modeled cars sold in the United States during fiscal 2009 include the Lexus RX450h, RX350 and the Prius. In addition, remodeled cars sold in Europe include the Avensis, the Carolla Verso and the Prius. The IMV product line-up based on the Innovative International Multi-purpose Vehicle project (IMV) to optimize global manufacturing and supply systems is a line-up of strategic multipurpose vehicles produced from a single platform to meet market demand. The IMV product line-up includes one or all of the Hilux, Fortuner and Innova which are available in all regions except for Japan and North America as of May 31, 2009. In February 2008, Toyota developed the worlds first driver monitoring pre-crash safety system for the Crown sold in Japan. This system monitors whether the drivers eyes are open, in addition to the face monitor which monitors the direction in which the driver is facing. Furthermore, in March 2009, Toyota developed and introduced the worlds first front-side pre-crash safety system, which detects possible head-on and front-side collisions such as at intersections, for the Crown Majesta.

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Chapter 9 Product development

Toyotas product development program uses a series of methods intended to promote timely and appropriate responses to changing market demand. These methods include: optimizing and eliminating vehicle platforms, sharing parts and components among multiple vehicles, shortening the time for development and production preparation by the simultaneous study of design and production engineering processes, and Using computers for production design and evaluation.

Table 14: Key R&D facilities of Toyota

Facility Japan Toyota Technical Center Tokyo Design Research & Laboratory Higashi-Fuji Technical Center

Principal Activity

Planning, design, vehicle evaluation, development of prototypes Design research and development of advanced styling designs

Research

and

advanced

development

on

powertrains, materials, electronic parts and other matters

Shibetsu Proving Ground Tokyo Development Center United States Toyota Motor Engineering and Manufacturing North America, Inc.

Vehicle testing and evaluation

Advanced technology development of electronics

Development of the upper body part for a portion of North American manufactured vehicles, adapting vehicles sold in North America to the market, advanced technology research, external affairs for legal and regulatory affairs, certification

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Chapter 9 Product development

Calty Design Research, Inc. Toyota Research Institute of North America (TRI-NA) Europe Toyota Motor Europe NV/SA

Design development, model production and design research Advanced research relating to energy and

environment, safety and mobility infrastructure

Development of the upper body part for a portion of European manufactured vehicles, adapting vehicles sold in Europe to the market, advanced technology research, external affairs for legal and regulatory affairs, certification

Toyota Europe Design Development S.A.R.L. Toyota Motorsport GmbH Asia Pacific Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. Toyota Technical Center Asia Pacific Australia PTY, Ltd.

Design development, model production and design survey Development of Formula One race cars

Design, development and evaluation of portions of vehicles that are exclusively sold in Australia and Asia

Design of portions of vehicles that are exclusively sold in Australia and Asia

Source: Toyota

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