The TechMobility Podcast

Hyundai's Electric Leap, Toyota's Revolutionary Cost Strategy, and the Flight Training Future

TechMobility Productions Inc. Season 3 Episode 4

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What if the future of transportation is not just about getting from point A to B, but a thrilling experience that reshapes industries? Join me, Ken Chester, as we explore how Hyundai is leading the charge in the electric vehicle revolution with the 2025 IONIQ 5N, a marvel of power and comfort that challenges traditional automotive norms. We'll also take a closer look at the electric aviation sector, where Pipstrel and Bristol are pioneering e-trainers that promise to transform flight training.

We'll uncover Toyota's bold Area 35 Cost Savings Plan, an audacious strategy to streamline their manufacturing processes for the future. This forward-thinking approach, inspired by historical successes, aims to reduce plant sizes and incorporate self-driving vehicles into production lines, ensuring Toyota stays ahead in a rapidly evolving market. Simultaneously, we'll scrutinize Stellantis' strategic moves, including the reimagined hybrid Jeep Cherokee, set to plug the market gaps and redefine consumer expectations.

As we navigate through the automotive landscape, we'll critically assess Jeep's current lineup and ponder the prospects of a more affordable, aspirational truck model. With naming controversies and brand identity challenges in the mix, we'll explore what it might take for Jeep to capture the hearts of a shifting consumer base. Buckle up for an insightful journey into the realms of cutting-edge innovation and strategic foresight in the world of mobility.

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Opening:

Welcome to the Tech Mobility Podcast.

Ken Chester :

I'm Ken Chester. We have plenty to discuss, so let's get started! On

Ken Chester :

the docket docket, my impressions of the 2025 Hyundai IONIQ 5N, how ow Electric Aviation is Gaining Momentum. And Toyota's Area 35 Cost Savings Plan. To join the conversation by asking a question, sharing an opinion or even suggesting a topic for future discussion, call or text the Tech Mobility Hotline that number, 872-222-9793,. Or you can email the show talk at techmobilityshow techmobility. show Be sure to check us out on social media, our YouTube channel and our two podcasts the Tech Podcast and Tech Topics . From

Ken Chester :

the Tech TechM obility News. Desk:

Ken Chester :

I know I have maligned Jeep extensively these last few months and Stellantis in general these last two months, so let me turn a leaf, because the chairman of Stellantis is asking all the employees to be positive and be nice and maybe in that spirit, as a journalist as an automotive journalist I may be nice too. So we'll start with some news from the blog called the Drive. It says the Jeep Cherokee will finally return in 2025 as a hybrid. They expect it to come back. They had taken it out of production back in 2023. The original, or the former Cherokee, the gasoline version was built at Chrysler's plant in Belvedere, Illinois. When it comes back in 2025, it will be a hybrid, which, right now, is where the market is. It's what customers want. It's what consumers want. Chief had left the door open when they discontinued the Cherokee for a replacement, but they were very vague on the where and the how and the what. Now they know at least the what. A point of contention, though, right now in the last contract agreement that Chrysler or, excuse me, Stellantis had with United Auto Workers, they had promised that Belvedere would be reopened with a new product within the next couple of years this hybrid. They have not announced whether or not Belvedere will get it, so it's not a slam dunk that it's coming back to Belvedere, so we don't know how that's going to be.

Ken Chester :

Where we're at is they had talked about a vehicle called the Jeep Recon, and it was originally slated to be an all-electric model built alongside Jeep's existing internal combustion and hybrid portfolio, but it looks like that there may be internal combustion variants of the Recon in development, and the Recon may actually become, quote-unquote, the Cherokee. The issue, though, because there are issues, they probably won't use the Cherokee name, because this has been a long point of contention with the American Cherokee Nation. They objected to that name on that vehicle. They objected to that name on that vehicle. So, while it may fill that niche, it may not necessarily be called the Jeep Cherokee. Up till its discontinuation in 2023, in one form or another, that vehicle had been built for 49 years, from 2014 till they gave it up. It was built on a modernized front-wheel drive-based architecture and Jeep left a hole and I mean, I've talked about this, how Jeeps went upscale and got big, but there wasn't really anything for somebody who wanted to start. You had the Jeep Renegade, which, I'm sorry, and I still say it, I had nothing nice to say about it Still don't. They built it in Italy. I thought they were clueless relative to the American marketplace and I thought it was awful, clunky and it just didn't cut it. And I thought it was awful, clunky and it just didn't cut it.

Ken Chester :

The Jeep Compass is what is left of the Compass and Jeep Patriot that they built together, which is basically the same vehicle with a slightly different body shell. I always wondered why they did that. One was more formal, one was more swoopy. Ironically, the swoopy one won out. I thought the Patriot would have won out, but what do I know? The Jeep Compass is nominally a compact SUV, but because it's on a European platform, it's slightly smaller when compared to the Honda CR-V and Toyota RAV4. It's similar in passenger room, but cargo space, yeah no.

Ken Chester :

The Cherokee, when it was built, leaned more towards the midsize segment, offering competitive space, more capable off-road bits, but they didn't have it all together. They kept sales afloat because sales kept dropping. Here's my big question, though for Jeep Did you learn anything now that Carlos Gervais is out? Did you learn and I'm talking to corporate, not the dealers, I'm talking to you, stellantis Did you learn that if you're going to launch this vehicle, that the price points need to make some sense where people can afford them, so that they can become aspirational as they want to come up the Jeep ladder? I mean this is a formula GM rode to success over 100 years ago. I mean this is a formula GM rode to success over 100 years ago. Right now, you don't have anything that somebody looking at wanting to own a Jeep would come into.

Ken Chester :

You've got the Wrangler, but the Wrangler has a distinction for being what it is, but it's not necessarily a vehicle that people aspire out of. Usually it's a purpose-built vehicle vehicle that people aspire out of. Usually it's a purpose-built vehicle and at one time the Jeep Wrangler was regarded as the most customized Jeep offered. People customized that more than anything. It also had the dubious distinction of one and done. You bought one, you never bought a second one. Statistically, compass is trying to cover all the ground that the larger Jeeps are not covering and that the Wrangler can't cover.

Ken Chester :

Will this vehicle, be it called a recon or something else, seek to start to fill that gap? And honestly, jeep, what you need is a can-do truck smaller than your current Mojave right now. You need something a little bit smaller than that, than the Gladiator Mojave. You need something a little smaller Because Ford hit a home run with their Maverick. It was the right truck for the right time and they were sold out for at least two to three years and the price was right. You could own the thing new for at least two to three years and the price was right. You could own the thing new for less than $20,000. And it was decently equipped.

Ken Chester :

I think that if Jeep is going to get serious about reversing the sales slide and putting a check in the ever-increasing MSRPs that they've been rolling out and I think I mentioned to you during our conversations that I test drove a Jeep Wrangler Mojave, Rubicon 392 that had a sticker price. It was a Wrangler people that had a sticker price of $108,000. Let that sink in for a minute $108,000. Yeah, and you wondered why Jeep sales are off. I'm rooting for them. I would like to see something smaller. In fact, I'd like to see two or three vehicles that fill the gap downstream. In fact, I'd like to see two or three vehicles that fill the gap downstream, that begin to fill their pipeline with aspirational buyers looking to move up into fancier and fancier Jeeps. Right now, jeep doesn't have that. They just don't.

Ken Chester :

I mean, you're in a Compass for a while. Do you aspire to go to a Wagoneer or a Grand Wagoneer from there? It's a big leap, it's a big ask. There's nothing between those two. If it's one thing, chevrolet, did you go from Trax to Suburban? And there's a way to go. Each time you trade and in fact, full disclosure my daughter is doing that right now. She's going from a Trax because her lifestyle has changed. She needs a bigger vehicle. She's going to leapfrog two sizes up, three sizes up actually, into a vehicle that she needs, that she can afford Chevrolet Because that's what she started, she likes it, she's familiar with it. Jeep needs to do the same thing. So we will see where that goes Before we go to break.

Ken Chester :

Lucid Air. You heard of Lucid Motors, upscale - two words: Lucid Gravity. It's an SUV they should have built first. It looks great. I'm excited For the Touring $79,000. For the Grand Touring $94,000. It's got a range of 440 miles and will carry seven people and their luggage comfortably. It looks sharp. I'm hoping to actually put my hands on one in the next 12 months and when I do, just like I did the Lucid Air, we will talk about it, because I am really excited about this thing. I've been waiting for this one. I've been waiting for this one and I'm really excited about this thing. I've been waiting for this one. I've been waiting for this one and I'm hoping that I get a chance to experience it as it goes into production and maybe even get to drive one 120 cubic feet of cargo space.

Ken Chester :

The award-winning Hyundai IONIQ 5 Pure Electric is now available in a performance version. My impressions are next. Y ou are listening to the Tech Mobility Show.

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Ken Chester :

Social media is the main place to be these days, and we are no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Facebook videos, from my latest vehicle reviews to timely commentary of a variety of mobility and technology-related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Facebook. You can find us by typing the Tech Mobility Show in the search bar. Be sure to subscribe to our Facebook page.

Ken Chester :

Social media is the place to be these days. We're no exception. I'm Ken Chester, the TechM obility show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology related topics. These short features are designed to inform and delight you be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Ken Chester :

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show, from Apple Podcasts to iHeartRadio and many podcast platforms in between. We got you covered. Just enter Tech Mobility Topics in the search bar, wherever you listen to podcasts.

Opening:

Introducing the hottest new car in America the all-new Accent starting at $8,484. When you get into the Accent, you'll see why everyone wants one. Maybe it's Accent's dual airbags or available anti-lock brake system, or the low-maintenance self-adjusting engine that delivers power and 38 highway miles per gallon. Or maybe it's the amazing introductory monthly payment as low as $99 for the first 12 months, with no down payment required, exclusively from your Hyundai dealers $99 a month for the first 12 months, nothing down.

Ken Chester :

The Hyundai Accent back then was the replacement vehicle for the Hyundai Excel that most people don't remember. In the 1980s that you could own for less than $4,000 brand new and it had a lot of problems. Hyundai's award-winning, brilliant marketing plan arose actually out of the shortcomings the Excel the and they wanted to get a tow-hold in the marketplace. They came out with a warranty that is still unbeatable by larger companies. The Accent was their small vehicle that would get a lot of respect down through the years until they recently discontinued it but a lot of respect. Over the years it got better and it got better and it got better, like the rest of the Hyundais, and it was a brilliant idea. $8,484. Can you imagine Brand new vehicle for that? You can't buy a 12-year-old vehicle for that in most cases today. Oh well.

Ken Chester :

That was 30 years ago. The Hyundai Ioniq 5 is a battery, electric, compact crossover SUV that's been produced by Hyundai since 2021. It is the first vehicle to be marketed under the automaker's electric car focus Ioniq sub-brand and also the first model developed on the company's electric global modular platform, better known as E-GMP. The IONIQ 5 is inspired by the original Hyundai Pony subcompact and features parametric pixel design that is applied to headlights excuse me taillights and wheels. The vehicle's clamshell hood spans the entire width to make a sleek look with the 20-inch aerodynamic wheels. The dedicated electric platform enables the vehicle to adopt a fully flat interior floor, which allowed interior designers to develop an airy cabin with plenty of available legroom for backseat passengers and impressive cargo capacity. The IONIQ 5N was introduced at the July 2023 Goodwood Festival of Speed. The variant is the top-of-the-line model for the IONIQ 5, marketed under the Hyundai N Performance sub-brand, hyundai and Performance sub-brand. This review will focus on that model alone.

Ken Chester :

The enhancements on this model are much more than merely cosmetic. For example, the IONIQ 5N is distinguished from the standard model by revised front end with larger air intakes, with additional air curtains and air flaps for improved cooling. The rear of the vehicle gained a rear wiper, a wing-type spoiler integrated with a triangular third brake light and a rear diffuser. With extended wheel arches and a wider track, the Ioniq 5N is actually 2 inches wider and almost an inch lower than the standard model. Structural integrity of the vehicle also received attention from Hyundai engineers, with the addition of 42 additional welding points and 83 inches of additional adhesives for improved rigidity Adhesives Bet you didn't know that was a thing in automotive assembly, but it is. The motor and battery mountings were also reinforced, while the subframes were enhanced for lateral rigidity. Power steering system has a higher ratio and improved torque feedback, and it's easy to see how serious Hyundai got about the performance of this pure electric.

Ken Chester :

Powered by two electric motors, one on each axle, the all-wheel drive IONIQ 5N is equipped with an 84 kWh battery pack with a range of 221 miles. Now that works out to 2.63 miles per kWh. You've heard me say this. I'm going to say it again. I consider this a much better comparison when evaluating performance and efficiency between EVs, as opposed to the confusing and convoluted calculation the feds use, called MPGE, which I just think it's worthless. I really think that miles per kilowatt hour makes more sense and is comparable, because it's apples to apples in a way you can understand.

Ken Chester :

Cargo capacity for the IONIQ 5N is 59.3 cubic feet with the second row seating folded flat. Zero to 60 times using the amazing boost button. Added additional acceleration for a few seconds from rest. Get this now zero to 60 for a subcompact car 3.25 seconds, definitely in performance car territory.

Ken Chester :

Here's what I liked about the vehicle Home run performance, eco, normal and sport drive mode. You're really not going to need the sport drive mode and the boost button. Oh God, you need to try that just once. It's a la the Genesis GV60, which is on the same platform, and let me tell you, serious fun. It works even with this thing, even has speed rated tires. Hyundai is serious y'all. And that's just for starters. Inside the passenger cabin, a sophisticated you got sophisticated displays, controls and switch gear that greet the driver, that are easy to read and easy to use. Surround view cameras in the low center of gravity aid the driver in situational awareness with an awesome outward view.

Ken Chester :

The IONIQ 5N is comfortable for four adults and I know what you're going to say, honey, we'll tell you five. Let me listen to Ken. Honest to God, four, four comfortably, trust me on this. A low step-in height combined with wide rear doors. They got a wide opening, facilitate rear seat access. The split folding rear seat folds flat with the cargo floor and even boasts a center armrest. A power rear hatch adds to user convenience and versatility. And let me add on that power rear hatch the thing that Hyundai likes to do. It's adjustable. You can adjust the height anywhere you want it. You put it where you want it, you hit the close button, you hold it in, it beeps twice and that's the setting. So if you don't want it open very large, you can do that. If you want it open all the way, you can do that. It's really, really cool.

Ken Chester :

Here's what I didn't like about the vehicle. The novel gear selection stock on the steering column took some getting used to. The low-boasted seats combined with the firm ride also took some getting used to. But it was fine once you did. This next item is subjective, but I'm just going to say it Orange exterior paint ain't my thing. I'm not a fan, just not Loud. No, when it comes to my cars, no, I'm loud, not my cars.

Ken Chester :

There's no rear heated seats or climate controls for rear seat passengers. Also, there's no head-up display, which I thought was a strange omission for a performance vehicle because you want to be all the way dialed in no fog lights, no spare tire and, believe it or not, the rear windows don't go all the way down. Finally, I would love some more driving range because, to be blunt, Hyundai and I love you, but here it is 221 miles won't cut it in the upper Midwest, not during extreme summers, not extreme winters. It's not going to work. A minimum of 300 to 350 would be better. It's not going to work. A minimum of 300 to 350 would be better. 375 to 400 mile range would be awesome. Bottom line, I loved my time behind the wheel of the Hyundai IONIQ 5N. Technology and performance galore, though a lack of a head-up display and a yearning for more range are concerns that will need to be considered. If you love driving but don't care for gasoline, then this is your next vehicle. Manufacturers suggested retail price for the 2025 Hyundai IONIQ 5N crossover SUV starts from $66,100. Destination charges add $1,475. And I'm telling you, if you love driving and you love response, you owe yourself a ride in this vehicle. Trust me.

Ken Chester :

Electric aviation gains traction with new battery-powered trainers.

Ken Chester :

This is the Tech Mobility Show.

Ken Chester :

Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us from Apple Podcasts, iHeart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar. Wherever you listen to podcasts. social

Ken Chester :

Social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Show. Several times a week I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility, technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Show on TikTok. Check it out.

Ken Chester :

Electric aircraft are drawing significant interest from flight schools worldwide, with at least two manufacturers already taking orders for their e-trainers. While current technology means that they can only support short flights, they provide modern, reliable and economical platforms for student pilots to complete their primary training in. This is Topic B. Let me start by saying this One manufacturer is already selling these and has sold some in the United States. The other one is getting ready to sell them. So let me answer a couple of questions that probably come to mind immediately. Yes, they can't sell them and they can't fly in the United States unless the FAA certifies them. Faa certifies them. Any new aircraft that is in an American airspace has to be. That airframe has to be certified by the FAA, no exceptions. Has to be and as certain requirements the FAA requires in order for these to be considered airworthy and to get the necessary certificate of airworthiness.

Ken Chester :

This article is out of Electronic Design Magazine and they're talking about basically low cost of operation and maintenance and the affordability issue. You know we talk a lot about going to electric and, ironically, the move to electric aircraft, particularly these trainers where student pilots spend time in the air flying, is not about being ecologically proper or saving trees or, you know, reducing pollution. Let me read it again they provide modern, reliable and economical platforms. That's what it's about. As always, it's about the money. Now, the one that's currently in the air that is called the. Let me get it. Now. Let's see. It's called the Pipstrel Velis Electro. It sells for $189,810. And they talk about the plane's excellent flight characteristics and low operating costs which have won it praise and a modest but growing share of the sport trainer market. It was certified five years ago and there's 100 of these delivered to customers in 30 countries, including the United States. Again, it was certified five years ago.

Ken Chester :

Let me back up a little bit. Let me back up a little bit. It boasts a 65-kilowatt power plant, gives the aircraft a cruise speed of 200 kilometers an hour, which is about 124 miles an hour, a climb rate of 650 feet a minute and it has a maximum rated payload of 380 pounds. During a typical flight, its 20-kilowatt-hour lithium-ion battery pack will provide 50 minutes of operation with 10 minutes of reserve. This is a big deal. It's a big deal and they've talked about this thing flying with it, extensive Wikipedia entry about additional tails, about the plane's technology development, and it's growing. That's one of them. The other one oh, I'm sorry, let me back up here because I'm getting all kinds of excited.

Ken Chester :

The other one which people are getting excited about is called the Bristol Energic E-Trainer. It's a SEC-built aircraft. It's a variant of the Bristol family of conventionally powered sport trainer products. The Energic is based on a modified version of the Bristol B-23 airframe, whose rugged construction and optimized handling characteristics has made it popular for flight schools throughout Europe. And this is the internal combustion version flight schools throughout Europe. And this is the internal combustion version.

Ken Chester :

Instead of the 100 to 140 horsepower Rotax power plants used in the rest of the series, the electric one employs an 80 kilowatt electric propulsion unit and it's manufactured the propulsion unit's actually manufactured by a company called H55, a Swiss-based company devoted to the development of electric flight technology. The EPU includes an electric motor, its controller electronics, an inverter and power electronics and, wherever practical, the electronics have been designed to eliminate single-point failures. The EPU is fed by an integrated 48-kilowatt hour energy storage system, also manufactured by H55. And that consists of two independent lithium ion battery packs, each equipped with an independent battery management and monitoring electronics. And let's talk about that.

Ken Chester :

The biggest thing in flying is redundancy, redundancy of systems. In flying is redundancy, redundancy of systems. And when you're flying electric and some people say, well, yeah, what happens if the batteries go dead? What do you do? Two independent battery management and monitoring electronic systems. The battery management system is the system that monitors the battery and maintains the battery and optimizes the battery. And because you got two different battery packs. They didn't have the two battery packs managed by one because that could be considered a single point failure. The redundancy here for this particular one is two independent battery management and monitoring electronic systems Again, redundancy that if one fails, the other one's good, so you should be okay.

Ken Chester :

When used for a typical training operation, the ESS can support a 60-minute flight with 10 minutes worth of reserve power. This could also cruise at about 124 miles an hour, climb at a rate of 800 feet per minute and has a load capacity of about 394 pounds. After a flight, the factory supply charger can bring the plane's batteries up to full capacity in a little over an hour, which is pretty good, pretty, pretty good. H55 says that the battery pack is expected to deliver 1,500-plus flights before it needs replacement or refurbishment and, though pricing hasn't been announced, it's expected to be on par with a conventionally powered Bristol trainer, while offering get it now significantly lower operating costs no airplane fuel that eliminates the cost and using electricity priced at 20 cents per kilowatt hour. A full charge costs a whopping $7. And that's roughly between 10 and 20% of the cost of the aviation grade fuel that a conventionally powered trainer would burn during an hour's flight.

Ken Chester :

In addition, the electric power plant requires virtually no maintenance and offers a longer service life than its internal combustion counterparts. Again, when you're talking about flight and you're talking about certification, the FAA is very specific about the age and hours in service of parts, particularly propulsion parts. So with that down, because they got to look at, inspect, replace, retune, refurbish at certain intervals there's no option. You can't let it go is no option. You can't let it go. It's not like your car where you know if it says you need to get an oil change and in 500 miles that, and you don't for a thousand miles, there's no consequence. Here in the airline business there is either the FAA or catastrophic failure. You don't want to fool with either one.

Ken Chester :

So on top of all of this, you've got a body of new pilots learning to fly an electric aircraft. This lays the groundwork as they learn how to fly these, a whole industry that's being built in real time. They will get more and more experience about how these function as opposed to conventional aircraft, and you'll have a whole generation of pilots that have experience flying electric aircraft. Imagine that.

Ken Chester :

Less factory space, more production that's Toyota's plan. Can they pull it off?

Ken Chester :

We are the Tech Mobility Show.

Ken Chester :

To learn more about the Tech Mobility Show by visiting techmobility. show. That's techmobility. show. You can also drop us a line at talk at techmobility. show. Did you know that Tech Mobility has a YouTube channel? Hi, I'm Ken Chester, host of the Tech Mobility Show. Each week I upload a few short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. It's another way to keep up on current mobility and technology news and information. Be sure to watch, like and subscribe to my channel. That's the Tech Mobility Show on YouTube. Check it out .

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Ken Chester :

Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos From the latest vehicle reviews to timely commentary on a variety of mobility and technology related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Ken Chester :

Although Toyota is late to the party when it comes to the development and marketing of pure electric vehicles, in five short years the automaker wants to boost its global factory power to build some 3.5 million EVs a year without breaking the bank on costly new plants or getting buried in heavy overinvestment. Should demand suddenly sour, can they do it? This is Topic C. Okay, number one, let's be real here. Number one you never, ever bet against Toyota. Fun fact, don't do it. Sometimes they miss it. But one thing, toyota the way that they work. They're in for the long haul. Which means, yeah, they may win and lose certain battles along the way, but their underlying plan generally is solid. Their underlying plan generally is solid and as much money as they throw and as much cash as they're sitting on and as conservative as Toyota is that being conservative, while did not always mean that they'd be first at anything, always meant that when they got there they would be solid, they'd be evolutionary. Because here's the thing Toyota's conservative approach means when the market goes south and other automakers got their hair on fire and cutting their research budgets and laying off people, toyota just hunkers down, leans on their cash supply and keeps developing stuff so that when they come out of whatever doldrums the market is in, toyota always comes out stronger.

Ken Chester :

Now Toyota is talking about something called Toyota's Area 35. That sounds ominous, doesn't it what Toyota wants to do, and it's precedent for this. I'll get to it in a minute. They want to shrink the average assembly plant by 35% because they believe that simplification of their lines, fewer parts, fewer variations will let them have less work in process and let them reclaim part of the factory. That will actually let them ramp up. They're looking at a whole different approach to building cars.

Ken Chester :

Today. You might say that Tesla was their wake-up call. But here is a shocker for you Toyota getting lean, leaner and I mean the Toyota lean management system was legendary, so legendary. Toyota went into their supplier plants and went to other automakers and other industries to preach it, but they weren't. First In the 1980s, ford Motor Company was up against it. And Ford Motor Company decided to bite the bullet, close a bunch of plants and vowed they would never build a new assembly plant ever again. They've broken that promise since, but in the 30 years that they did that, using quality Assurance guru William Deming, ford squeezed the equivalent of an assembly plant's production out of existing assets existing plants, existing tooling, existing everything. They got the equivalent of 300,000 to 400,000 units out of what they already had. Toyota has taken that to the whole next level Now. We've reported here that Toyota was looking at their battery technology where in the next two years now Toyota should have an EV battery with a 600-mile range and by the end of the decade Toyota said that they would have an EV battery capable of going between charges 1,000 miles. Superimpose on top of that what they're doing now and what they're doing in their plants right now.

Ken Chester :

Their blueprint Area 35. It's a flexible blueprint for squeezing the carmaker's existing global production footprint for about 35% more floor space. It calls for slatching the number of different parts used by up to 80% worldwide to simplify production through fewer product variations. Even GM had a slogan for that again 30 years ago under I forget the chairman's name Wagner. Richard Wagner called Run Common, run Common, run Common.

Ken Chester :

Automakers have been looking at this in various ways for years Get costs down, get rid of work and process inventory, which a lot of money was tied up. That's how Ford survived it and improved upon it under William Deming. Back in the day, toyota said doing that the streamlined Pirate Spin would also speed product development, giving Toyota extra bandwidth. Get this now for an additional three full model changes. And doing all of this will boost profits by three and a half percent and given that Toyota makes billions of dollars, that's millions of dollars profit. Area 35 will enable Toyota slim down its product offerings to focus on high selling core models while staying nimble enough to manufacture whatever kind of powertrains are in demand.

Ken Chester :

Do you realize how much flexibility that is right now the way the automakers are focused? They spend billions of dollars building this supply chain. For over 100 years in turtle combustion engines they streamlined it. It's gotten very good, but it's very rigid. They are limited. Back before Dieselgate, about maybe 15 years ago, suddenly Volkswagen diesels were in demand. Volkswagen thought that the take rate would be 8% and meaning that 8 out of every 100 people in the United States would choose a Volkswagen diesel when they bought Volkswagens. During that time, it doubled to 16%. It would take Volkswagen three model years to actually get their supply chain up to that level. That's what Toyota is trying to change. They want to minimize costs and maximize flexibility, but that has been the automaker's quandary ever since this industry began Taking a page out of BMW, and we reported about that a couple weeks ago.

Ken Chester :

Toyota wants to use vehicles that drive themselves down the assembly line as a strategy to save the cost of investing in fixed hangers or pits while at the same time improving production flexibility. Bmw does it now. We mentioned 3.5 million EVs in roughly five years. Of those, 1.7 million will ride on a new module EV architecture that will debut on the Lexus premium brand next year. Now I'm going to blow your mind. Now I'm going to blow your mind Right now.

Ken Chester :

Right now, Toyota is doing this conversion in 10 of its assembly plants. Right now. They're not waiting forever. Right now. It's happening right now. You're not waiting forever. Right now it's happening right now. 10 plants overhaul already underway, because you either evolve or die and all the automakers are looking at this, and the ones that survive it will be the ones that are able to move closest to what customers want, and it's always been a challenge for every automaker. It doesn't matter who it is, and they keep trying. They keep trying a million different things going on at once. Problem is it costs money to do it and billions of dollars to build a new assembly plant. You're out of pocket hard $3 billion and three to five years that doesn't count everything else you got to put in it, plus all the support plans, plus the training, plus, plus, plus. We'll see if they can do it.

Ken Chester :

We've come to the end of our visit. Be sure to join me again right here next time. This has been the Tech Mobility Show.

Opening:

The Tech Mobility Show is a copywritten production of Tech Mobility Productions Incorporated. Any rebroadcast, retransmission or any other use is prohibited without the written consent of Tech Mobility Productions Incorporated.

Ken Chester :

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show. From Apple Podcasts to iHeartRadio and many podcast platforms in between, we got you covered. Just enter Tech Mobility Topics in the search bar. Wherever you listen to podcasts.

Ken Chester :

Social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out.

Ken Chester :

To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings of the Tech Mobility Show by visiting techmobility. show. That's techmobility. show. You can also drop us a line at talk at techmobility. show. .

Ken Chester :

Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us From Apple Podcasts, iHeart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar wherever you listen to podcasts.

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