Toyota's CEO States that the Company Can No Longer Sell Vehicles Solely Through Model Updates.

      Bradley Iger

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      If you were to wake up today after being in a coma for 15 years, what would astonish you about the current car market? Personally, I’d be surprised by the success of the company that produced electric Lotus Elises. I’d be confused by Jaguar’s break, saddened by Nissan’s decline, and I wouldn’t believe that GM had finally made a mid-engine Corvette until I saw it in person. Above all, I’d be thrilled to discover that Toyota had reconnected with its enthusiast roots. Based on recent comments from Toyota's relatively new CEO, it appears that the company is not looking to return to its past stagnation anytime soon.

      Earlier this month, the world's largest automaker by volume shared its financial results for the year so far. Toward the end of a Q&A session, a reporter posed an intriguing question to Toyota President and CEO Koji Sato, according to Toyota Times: How does he feel about modern cars being less “exciting and fun to drive”? Sato’s response was revealing.

      “I feel the same way, and you’re absolutely right,” the CEO remarked. “A car isn't a car if it isn’t fun. That's why we will never let our cars become commodities. The days of logical left-brain thinking dictating everything and cars being sold solely based on superior catalog specifications are over. We can't sell vehicles just by providing model updates, slightly improved fuel efficiency, or new designs. It boils down to your passion for creating products that resonate emotionally.”

      Toyota President and CEO Koji Sato.

      “Moving people’s hearts” might sound like typical PR jargon, but the rest of his statement—“a car isn’t a car if it isn’t fun”—is striking coming from Toyota, a brand that, for better or worse, has often focused on creating reliable, practical vehicles. While those qualities are undeniably crucial, they are no longer sufficient, nor is it effective to merely claim the highest figures on a spec sheet.

      Today, four-door family vehicles can accelerate to 60 mph in just 3.5 seconds. Having high horsepower and torque numbers is no longer revolutionary. Fuel efficiency is accessible to those who seek it, and let’s face it—many Americans make the opposite choice with their purchases. Simply being better isn’t enough to distinguish your product, and arguably, it hasn’t been for some time.

      The fact that many of us are unwilling to let manual transmissions fade away further illustrates this point: We've surpassed the era in which the best-performing cars determined sales. Moreover, “fun” should not be equated with “fun to drive.” Many individuals do not necessarily prioritize precision and performance in their vehicles; joy can be expressed in other ways, such as through design, advanced technology, or unique color options. “Of course, sports cars must be sleek,” Sato added, “but if that same enthusiasm isn't present in other types of vehicles, you won't attract customers.”

      This is about conveying a sometimes intangible passion during a time when developing cars has never been more costly, leading automakers to reuse established platforms and collaborate against emerging competition. The model Sato refers to—incremental improvement—is fading. While we’ve heard some leaders of popular startups express similar sentiments, it carries a different weight coming from one of the most “legacy” manufacturers.

      These are the challenges that Sato and his colleagues face. The 56-year-old former engineer took over Toyota from another well-known enthusiast executive two years ago, as of last month. Following Akio Toyoda's departure, there was concern that the company would waste the goodwill it had earned by producing enjoyable vehicles with unique appeal. Sato’s remarks suggest this won’t be the case. Furthermore, while “Morizo” may not be in charge anymore, that simply allows him more time to drive.

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