1. Creating sustainable mobility Piet Steel Toyota Motor Europe www.brdo-co2nference.net

2. TOYOTA MOTOR EUROPE Creating Sustainable Mobility Piet Steel Climate Change: An Opportunity for Growth Vice-President Brdo European Affairs 16 November 2007 Toyota Motor Europe

3. TOYOTA MOTOR EUROPE 1.Sustainability challenges & Toyota’s response 2.Innovation for the environment Agenda

4. TOYOTA MOTOR EUROPE Toyota - In Europe Began selling cars in 1963 Over €6 billion invested since 1990 in manufacturing, sales, parts and logistics networks as well as R&D, Design and Formula One. Over €5 billion/year spent with European suppliers each year 1,124,000 vehicles sold in 2006 2007 expected to be 11 th consecutive year of sales growth

5. TOYOTA MOTOR EUROPE “Around 70% of Toyotas sold in Europe are made in Europe by Europeans” European Production: “Operating at full capacity”

6. TOYOTA MOTOR EUROPE Safety Accidents, injuries Mobility Congestion, equal access Quality of life Employees, customers and communities Energy Consumption Sustainability challenges Environment Emissions, waste, biodiversity

7. TOYOTA MOTOR EUROPE Safety Accidents, injuries Mobility Congestion, Equal Access Quality of life Employees, customers and communities Energy Consumption Sustainability challenges Environment Emissions, waste, biodiversity

8. TOYOTA MOTOR EUROPE Global Increase in Vehicles

9. TOYOTA MOTOR EUROPE CO 2 Emissions Increase

10. TOYOTA MOTOR EUROPE Automotive energy sources will diversify into liquid, gas and electricity Primary energy Automotive fuels Manufacturing Residential Mobile use Stationary use Gasoline, diesel Biofuels Gaseous fuels (CNG, LPG) Electricity Oil Biomass Solar, wind, hydro, nuclear Coal Current Mainstream Synthetic fuels (FT synthetic diesel, etc.) Hydrogen Natural gas Fossil Fuel Other Sources Future automotive fuels

11. TOYOTA MOTOR EUROPE 1.Sustainability challenges & Toyota’s response 2.Innovation for the environment Agenda

12. TOYOTA MOTOR EUROPE Valvematic Petrol & diesel engine performance is being improved with new technologies … Environmental performance (fuel economy, emissions) Environmental performance (fuel economy, emissions) Environmental performance (fuel economy, emissions) Environmental performance (fuel economy, emissions) Driving performance (dynamics) Petrol engine Diesel engine Common rail (135MPa) Common rail (135MPa) DPNR Piezo injector Common rail (180MPa) Common rail (180MPa) 3-way catalyst 3-way catalyst Lean burn VVT-i D-4S Low friction Engine technology evolution

13. TOYOTA MOTOR EUROPE … and so is transmission performance … Environmental performance (fuel economy, emissions) Driving performance (dynamics) Transmission ECT-i Flex lockup Stop/start 6AT 8AT CVT Vehicle Dynamics Integrated Management Transmission technology evolution

14. TOYOTA MOTOR EUROPE … whilst body weight can also be reduced in the same way Environmental performance (fuel economy, emissions) Body weight New concept Carbon fibre technology Carbon fibre technology Aluminum (Hood) High tension steel Body technology evolution Tailored blanks Alternative material structure Alternative material structure Ultra light

15. TOYOTA MOTOR EUROPE ① ② Indicates good fuel economy condition Indicates gear shift point for good fuel economy drive Gear Shift Indicator (manual transmission) Eco Drive Indicator (Automatic transmission, CVT) ＥＣ Ｏ Indicates momentary fuel economy value Momentary FE 11.4km/L Driver education program Support for eco-driving

16. TOYOTA MOTOR EUROPE Biofuels – Toyota’s stance Allow for 10% ethanol and 5% bio-diesel blending Need for clear consumer information and awareness to avoid confusion at the pump & possible problems Need for fuel quality standards on alternative fuels Flex Fuel Vehicles in certain markets (Brasil, USA) Preference is 2 nd Generation: better overall CO 2 reduction

17. TOYOTA MOTOR EUROPE Hybrid technology Contributes to high fuel efficiency Usable for all types of powertrain

18. TOYOTA MOTOR EUROPE Fuel efficiency Driving performance Low emissions Quietness Hybrid technology Battery Internal combustion engine Electric motor

19. TOYOTA MOTOR EUROPE (1,000 units) (year) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1000 900 800 700 600 500 400 300 200 100 ★ Aiming to reach one million per year early in the 2010s decade Ten years of hybrid sales 1m sold May 2007 EuropeWorld-wide Toyota2%3,2% Lexus26,2%9,3% Year 2006

20. TOYOTA MOTOR EUROPE Hybrid technology evolution Toyota Hybrid System (THS) THS III THS II ? Result: Cost:-70% Target: Cost:-50% Size:-50% Weight:-50% The first mass production hybrid 1997 2003 20XX

21. TOYOTA MOTOR EUROPE Plug-in hybrid vehicle A petrol or diesel hybrid vehicle with an external recharger A petrol or diesel hybrid vehicle with an external recharger

22. TOYOTA MOTOR EUROPE Challenges for fuel cell vehicles Startability test ・ Achieve starting & driving under –30 ℃ ・ Range now proven at 560km on one tank ・ Achieve starting & driving under –30 ℃ ・ Range now proven at 560km on one tank Performance in very cold conditions

23. TOYOTA MOTOR EUROPE Toyota’s point of view: As a responsible company we have the culture & technology to similtaneously increase sustainable mobility and reduce the environmental impact of our activities As a company with long-term prospectives we invest in R&D and work simultaneously on many technology options By strengthening co-operation amongst stakeholders and the right mind-set can we overcome the challenges of climate change

24. TOYOTA MOTOR EUROPE Gasoline, Diesel Gaseous Fuels ElectricityHydrogen Synthetic Fuels Biofuels the Right Placethe Right Time Hybrid Technology the Right Car Ultimate Eco-Car Energy diversity Air quality CO 2 reduction

25. TOYOTA MOTOR EUROPE Thank you

26. TOYOTA MOTOR EUROPE