The Hybrid World

1. The Hybrid World Bryon Stremler, P.Eng Manager, Government & Regulatory Affairs Toyota Canada Inc.

2. Outline • About Toyota • The Environmental Issues and Toyota’s Commitments • Identifying and responding to customers’ needs • What is a Hybrid? Different types, benefits, features. • Hybrid efficiency • Myths about Hybrids • Toyota’s Hybrid Line-up • Toyota Hybrids in Fleets • The Future of Hybrid Technology

3. About Toyota • World’s 8th largest company • World’s 2nd largest motor vehicle manufacturer • 264,000 employees • Sales in 140 countries • Manufacturing operations in 27 countries (including Canada) • 7.974 million units Sold last year* • ¥21.03trillion net revenues* (~$US 180 billion) *(2005/06 Fiscal Year ending March 31,2006)

4. Mobility on a grand scale

5. Challenges, also on a grand scale

6. The Call to Action “There is no future for the automotive industry without the promotion of environmental technology. Toyota is convinced that only companies that succeed in this area will be acceptable to society.” Fujio ChoChairman, Toyota Motor Corporation

7. The Reality • “The new social priorities of the emerging era will call for radically new approaches to vehicles … • … automakers have to address the issue of co-existence with society, particularly in relation to environmental preservation and safety…” • Hiroshi OkudaChairmanToyota Motor Corp., Japan, 2004

8. Toyota’s Environmental Commitment • Toyota is a world leader in producing advanced technology vehicles that are environmentally friendly. • Toyota vehicles are consistently among the winners of EnerGuide’s most fuel efficient vehicle in class awards. • All Toyota Canada facilities will be ISO 14001 registered by the end of 2007. • Landfill Diversion & Recycling • Reduced landfill waste by 85% at TCI headquarters • Recycle 95% of packaging and parts at vehicle processing and parts distribution centres • Environmental and Community Partnerships • Toyota Earth Day Scholarship • Toyota Evergreen Learning Grounds

9. What Does the Market Want? A significant and growing percentage of customers indicate a willingness to buy an environmentally friendly vehicle If, and only if, all other attributes are EQUAL or Better

10. Technology Design Objectives • Significant fuel economy improvement. • Major reduction in exhaust emissions. • No new infrastructure needs (e.g. fuelling stations). • No perceived difference by customer in vehicle performance, handling, etc. • A competitive price to encourage adoption.

11. What is a Hybrid? “A hybrid vehicle is a vehicle with two or more energy storage systems, both of which must provide propulsion power.” Paraphrasing of the definitions developed by IEC, SAE and ARB which all require propulsion power from the secondary energy storage system. Note: Many other definitions exist! IEC – International Engineering Consortium

12. Hybrid Synergy Drive (HSD)

13. Hybrid Synergy Drive Benefits • CLEAN: Reduced Exhaust Emissions • Better air quality, minimizes adverse health effects • EFFICIENT: Reduced Fuel Consumption • Lower operating cost, less CO2, less oil consumption • POWERFUL: More Fun to drive • Quicker 0-100 km/h, immediate response, increased torque • Combinations of the Above

14. Hybrid Synergy Drive (HSD) With 4 decades of related research, Toyota has more hybrid experience than any other automaker.

15. HSD Features • Idle Stop/Start • Regenerative Braking • Electric-only mode (Engine off) • Power boost • Self-charging battery • Low Emissions • Low Fuel Consumption

16. Prius History 5.5 City Label FC 4.5 4.0 4.7 4.2 Highway Label FC 5.7 0-100 km/h Accel 14.5 12.5 10.1 Emissions LEV SULEV AT-PZEV 2004 Model Years 1998-2000 * 2001-2003 Subcompact Compact Midsize Size Class • Japan only • LEV – Low Emission Vehicle • SULEV – Super Low Emission Vehicle • AT-PZEV – Practically Zero Emission Vehicle

17. Midsize Vehicle Fuel Consumption Camry: Δ 300 L/yr (Best 2005 Midsize Diesel) Δ 580 L/yr (Midsize 4 cyl Avg Gas) Prius: Δ 620 L/yr (Best 2005 Midsize Diesel) Δ 900 L/yr (Midsize 4 cyl Avg Gas) 8.6 L/100 km 7.2 L/100 km 5.7 L/100 km 4.1 L/100 km

18. Special Purpose Vehicle Fuel Consumption RX 400h / Highlander Hybrid Δ 820 L/yr V6 Avg (Gas) Δ 1400 L/yr V8 Avg (Gas) 14.8 L/100 km 11.9 L/100 km 7.8 L/100 km 7.8 L/100 km

19. Well-to-Wheel Efficiency Electric cars are NOT “zero emissions” vehicles… … because power generation creates emissions! Mining coal Transporting coal Burning coal Hybrids have the best Well-to-Wheel efficiency today

20. Well-to-Wheel Efficiency

21. Value vs. Price You wouldn’t choose a university based on cost alone… … why choose a car that way?

22. The Hybrid Advantage GS 450h: 3.5L V6 + electric motor 339 hp GS 430: 4.3L V8 300 hp GS 300: 3.5L V6 245 hp

23. Hybrid Myths • Hybrids pose a threat to first responders • The brightly-colored orange wires are heavily protected and run underneath the floor in the center of the vehicle. Rescue workers can cut through any door or even a window-area without any fear of coming in contact with them. • Hybrid vehicles need to be plugged-in • Never!  You never plug in the battery-pack. The engine and regenerative braking provide the necessary electricity. • Hybrid Batteries need to be replaced • There have been no failures in service to date and there is an 8 year / 160,000 km warrantee on all hybrid components. • Hybrids are small and underpowered • As explained in the last couple of slides, this is simply not the case. Hybrids out-perform their conventional counterparts and often come equipped with features not found on other models. • Electromagnetic Fields in hybrids are harmful to human health • EMFs inside and outside of Toyota hybrids are at the same low levels as conventional gasoline vehicles. Therefore there are no additional health risks to drivers, passengers or by-standers. • Hybrids are only about improving fuel economy • In addition to improved fuel efficiency,hybrid vehicles produce less smog forming emissions, and offer improved performance.

24. Toyota’s Hybrid Fleet Lexus GS 450h Toyota Highlander Hybrid Toyota Prius Lexus RX 400h Toyota Camry Hybrid

25. Future Hybrid Models Lexus LS 600h FTX Hybrid Pickup Concept

26. World Firsts Front Wheel Drive Rear Wheel Drive 4 Wheel Drive

27. Hybrids in Fleets • Federal Government is using many Toyota Hybrids in their vehicle fleets. • Several Municipalities & Government agencies have Toyota Hybrid vehicles in their fleets. • Taxi & Fire Department Fleets

28. BC’s Commitment to Hybrids • The Government of British Columbia currently operates the largest fleet of Toyota Prius hybrids in Canada. • Recent announcement to purchase/lease only hybrid vehicles for government fleets.

29. The Highlander Hybrid in theToronto Fire Services Fleet The Highlander Hybrid was chosen after an intensely competitive bid process. It won because of its high performance, its low operating cost, and its low fuel consumption.

30. The Prius in Taxi Fleets The Toyota Prius continues to be the vehicle choice of several Taxi fleets across the country. “Hybrid taxis are the way of the future.” North America's Highest Mileage Hybrid 410,000 Km

31. Test Drive Comparison

32. Future Hybrid Applications Hybrids can be integrated into all powertrain configurations, regardless of the power source.

33. The Road Ahead “I have dreams of producing cars that can go across the North American continent on just one tank of gas, and cars that make the atmosphere cleaner the more you use them.” Katsuaki WatanabePresidentToyota Motor Corp., Japan

34. TOYOTA CANADA INC. Thank You Bryon Stremler, P.Eng Manager, Government & Regulatory Affairs