TOKYO – Toyota Motor Corp. is stepping up its transition from gasoline-burning to battery-powered vehicles by converting two decades’ old powertrain plants in Japan into battery production sites.
The overhaul is part of a $5.6 billion investment plan announced this week by the world’s biggest automaker.
The Shimoyama engine plant and the Myochi powertrain factory, both near Toyota’s global headquarters, will be upgraded to also turn out batteries for electric vehicles.
Battery production at these sites will be handled through Prime Planet Energy & Solutions, a joint venture between Toyota and Panasonic.
“We would like to utilize the manufacturing technologies and skills we developed in producing engines and other units and parts for battery production as well and establish a multi-powertrain production system to help provide a wide range of options,” a spokeswoman said.
The shift offers some insight into Toyota’s strategy for coping with industry upheaval as old-school automakers race to modernize in the new age of electrification.
The plant conversions suggest Toyota will use existing plants and workers and try to manage a controlled evolution.
Details of the plan emerge as automotive leaders around the world warn of looming job losses in the transition to electric vehicles. EVs have many fewer parts than traditional internal combustion vehicles, requiring fewer workers putting in fewer hours to assemble and build.
Electric vehicles also rely more heavily on technology industries outside the traditional auto world.
