Development and Design

Development & Design

Enhancing Next-Generation Product Development

performance improvements in all six environmental areas. The Development and Design Group plans to continue enhancing the product development process by appropriately applying the concepts of ISO 14001.

Internal Audit and ISO 14001 Surveillance Audit Results

■ Hiroyuki Watanabe (Managing Director and Chairman of Environmental Product Design Assessment Committee)

Hiroyuki Watanabe joined Toyota in 1967. He became a director in 1996 following various assignments, including that of Chief Engineer for the Crown, and later led efforts to develop electric vehicles. When he became Managing Director in June 1999, he was also appointed Chairman of the Environmental Product Design Assessment Committee. In addition, he has been overseeing Toyota’s efforts to develop fuel-cell systems.

Product Development Based on ISO 14001 Certification In March 1998, Toyota’s Development and Design Group received ISO 14001 certification for automobile development and design — a first for a Japanese automobile manufacturer. To develop automobiles with minimum environmental impact, it is essential to address the issues that arise during an automobile’s use and disposal stages. Toyota has assigned Environmental Managers, Environmental Technology Chiefs, and Administrators for Promotion in each of six environmental areas, including fuel consumption and exhaust emissions, and conducts interdivisional management of the development and design organizations for each vehicle series. In FY1998, Toyota applied the environmental management system to all new and remodeled cars that it manufactured and sold in Japan. As a result, Toyota met its goal by achieving steady 22

Internal audits are performed every year to ensure that the environmental management system is operating appropriately. The October 1998 internal audit did not reveal any significant problems. Four instances of minor noncompliance in various areas were pointed out, however, and 24 improvement recommendations were made. Action was immediately taken to correct these issues. Although the first ISO 14001 maintenance examination in February 1999 indicated one minor improvement note, it was also stated that “the system has been appropriately maintained and continuous improvements have been made since the initial examination.”

FY1998 Action in the Six Environmental Areas (1) Improving fuel efficiency Toyota established voluntary goals that exceed government targets set for the year 2000 in terms of the average fuel efficiency of gasoline-powered passenger cars by equivalent inertia weight, and has been continuously working toward meeting these goals. ● The government targets*1 for average fuel efficiency in 2000 are: Category 1 : 18.2km/L Category 2 : 13.0km/L Category 3 : 9.1km/L

*1 These government targets became obsolete when the Energy Conservation Law was revised and the new 2010 targets were established in April 1999. Although Toyota has already begun efforts to comply with these 2010 targets, this report, prepared for FY1998, refers to actions taken during FY1998 toward meeting the 2000 targets.

● Subject Areas and Objectives Subject area

FY1998 goal

(1) Improving fuel efficiency

● In consideration of government objectives for passenger car fuel consumption in FY2000, establish even stricter voluntary standards and achieve fuel efficiency at the top level in each vehicle class by that year.

(2) Reducing exhaust emissions

● Establish voluntary standards stricter than exhaust emissions standards set by law and achieve them on all vehicles. 1. Achieve by 1998: Light-weight diesel truck emissions (total vehicle weight of 1.7 tons or less) 2. Achieve by 1999: All gasoline vehicles, diesel passenger cars, and medium- and heavy-weight trucks (total vehicle weight of more than 1.7 tons)

(3) Reducing external automobile noise

● Establish voluntary standards to ensure compliance with external vehicle noise standards set by law and achieve them on all vehicles. 1. Achieve by end of 2001: Passenger cars 2. Achieve by end of 2002: Trucks

(4) Using less refrigerant in air conditioner

● Establish voluntary standards for conserving use of substitute refrigerant (HFC134a) and achieve those standards on new mass-production models and models that undergo full-model changes by 2000.

(5) Reducing substances of environmental concern (6) Improving recoverability

● Cut the amount of lead use by one-half of auto industry’s 1996 level on new mass-production models and models that undergo full-model changes by 2000, and cut use of mercury and cadmium below present levels.

● Steadily improve vehicle recoverability*2.

*2 Toyota has established its own recoverability standards and has been working to improve recoverability. Note that no progress was made during FY1998 toward establishing a standard international definition of recoverability.

Development & Design

● Average Fuel Efficiency Trends by Category

■ Vehicle Weight Class Category Category 1 Category 2 Avg. Category 3 Avg.

875kg 1,000 ~ 1,500kg 1,750kg ~

(km/l) 22.0 21.0 21.0 20.3 21.4 20.0 19.0 17.7 17.6 17.4 18.0 17.6 17.4 17.0 17.0 16.0 15.0 14.0 13.1 12.8 12.2 12.3 13.0 12.3 12.5 12.1 12.1 12.0 12.0 11.0 10.0 8.5 8.4 8.5 9.0 8.5 8.2 8.0 7.9 8.0 8.1 8.0 7.0 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 2000 Note 1: The sharp increase in fuel efficiency between FY1996 and FY1997 (FY) for Category 1 vehicles is mainly due to the exclusion of AT vehicles, leaving only MT vehicles in this category. Note 2: Although AT vehicles (Vitz) were added to Category 1 again in FY1998, the average fuel efficiency improved.

● Changes in Fuel Efficiency in Major Vehicles Vehicles with Automatic Transmission (km/l) 20 Vitz (Starlet) 19 Vista 1.8L 18 Vista 2L 17 15.6 16 15 14 13 12.2 12 11 11.3 ’92

’93

20.5 Vitz 17.2 15.4 Starlet 15.0 12.8

12.2

12.2

11.8 ’94

’95

’96

’97

(a) Development of new-generation gasoline engines and expanded use of VVT-i In FY1998, Toyota developed two types of new-generation, light-weight, low fuel-consumption engines. It subsequently introduced the 1L 1SZ-FE in the Vitz and the 1.8L 1ZZ-FE in the Vista. In the 1SZ-FE, combustion efficiency was improved by using compact combustion chambers, and friction loss in parts was reduced. The Vitz, using this engine, achieved a fuel efficiency performance of around 20 km/l (AT vehicle, 10-15 mode), surpassing other cars in the same class. In the 1ZZ-FE, lighter weight, improved combustion, and reduced friction losses were achieved by various means, including the use of a light-weight aluminum engine block, an aluminum pipe long intake manifold, and a long dual-θ exhaust pipe. This resulted in a fuel efficiency improvement of 17% (1015 mode) compared with the existing Vista. In order to further improve fuel efficiency, in addition to the two new engines, VVT-i*1 (Variable Valve Timingintelligent) was adopted in five new vehicle series — in 11 out of 19 models — launched in 1998. Moreover, the 3SGE engine used in the Altezza adopted the newly developed dual VVT-i, which controls both the exhaust and intake valve timing, thus stabilizing combustion and increasing the internal EGR*2 rate.

’98 (FY)

New 1SZ-FE engine used in the Vitz

New 1ZZ-FE engine used in the Vista

*1 VVT-i: Variable Valve Timing-intelligent continuously optimizes intake valve opening/closing timing based on the engine’s operational condition, thus significantly improving fuel efficiency and resulting in cleaner emissions. *2 EGR: Exhaust Gas Recirculation

23

(b) Increasing the number of D-4 direct-injection gasoline engine vehicles

rear wheels according to driving conditions. This system was adopted in the Gaia, Vista, and Nadia.

The D-4 engine was installed in the 2L class vehicles of the new 1998 Vista and Nadia. The new Vista achieved a fuel efficiency improvement of 26% (1015 mode) compared with the previous Vista. Toyota also continued to file patent applications related to the development of the D-4 engine; as many as 700 applications had been filed by the end of FY1998.

(e) Improving fuel efficiency through weight reduction with a highly rigid structure

Theoretically, diesel engines offer higher thermal efficiency than gasoline engines. In the Gaia, newly introduced in 1998, a high-efficiency turbo charger and an electronically controlled intake throttle were adopted along with other technologies in order to further reduce fuel consumption. The most important improvement issue for diesel engines is their exhaust emissions; this is addressed in “(2) Reducing Exhaust Emissions.”

(d) Achieving class-leading fuel efficiency using new technologies Toyota developed a new type of automatic transmission, featuring such enhancements as a highly efficient electronically controlled Flex Lock-Up System. This transmission was adopted in the Progrès, Vista, Nadia, Altezza, and Vitz in FY1998. To help reduce fuel consumption and at the same time increase stability, Toyota also developed a 4WD system using electronic control that appropriately allocates torque (power) to the front and 24

(2) Reducing exhaust emissions When developing technologies related to power trains, including engines, the most important issue is the improvement of fuel efficiency to reduce CO, HC, NOx and other elements that cause air pollution, and also to reduce CO2

(a) Voluntary goals that exceed new targets for gasoline vehicles in 2000

The new emission regulations for the year 2000 require the levels of CO, HC, and NOx in exhaust emissions of new passenger cars to be reduced to about 70% of current regulation levels, and that emission performance be maintained to 80,000 km. Toyota instituted voluntary standards from 1997, and the Progrès, Vista (1ZZ-FE), Windom (1MZ-FE), Nadia (3S-FE), Altezza (1G-FE), and Vitz cleared the new regulations in FY1998. This was achieved through development of the new 1ZZ-FE and 1SZ-FE engines installed in the Vista and Vitz, and by adopting VVT-i and other technologies. These include a new exhaust emissions reduction system that is more

● Trend in the Number of Gasoline Vehicle Models Achieving Year 2000 Emissions Regulations

40 No. of models

(c) Further improvement in low fuel consumption characteristics of diesel engines

In the Vitz, newly introduced in FY1998, a high-rigidity body that provides both safety and light weight was achieved by increasing the linking rigidity among the body frame components, and by extensive use of high-tensile strength steel plates (48% of the body shell mass). Toyota is also continuing its efforts to reduce the weight of RVs, for which comfort is an important requirement. Toyota’s efforts to reduce the air resistance of vehicles has resulted in a CD (Coefficient of Drag) value of 0.3 for the Progrès and Vitz, and 0.29 for the Altezza.

emissions. Toyota believes that a vehicle’s emissions performance is always important, especially after the vehicle has been driven for long distances; that is, when components such as the catalytic converter begin to deteriorate. Toyota proceeded with product development after voluntarily setting its own stringent exhaust emissions standards that take into account this postoptimum performance period, as well as new and future regulations. As a result, all of its models and engines cleared these standards in FY1998.

Start of Regulations (Plan)

30 20 10

Central Environment Council Report

0 1997

1998

1999

2000

Oct.

(year)

Development & Design

precisely operated through performance enhancement and appropriate positioning of the three-way catalytic converters. The D-4 direct-injection gasoline engine underwent improvements. These included more precise control of the exhaust emissions reduction device and enhancements to the cleaning performance of the NOx storage reduction three-way catalytic converter through the adoption of a hexagonal cell structure. The improved D-4 engine was installed in the Vista and Nadia. The NOx storage reduction three-way catalytic converter is a system in which the catalyst first absorbs the NOx in the exhaust emissions, which is difficult to clean during lean combustion. It then releases this NOx during operation with a rich air-fuel ratio, thus instantaneously deoxydizing it. Many organizations, including the Japan Society of Mechanical Engineers and the Society of Automotive Engineers, have given high marks to this NOx storage reduction three-way catalytic converter as an extremely effective technology for reducing NOx, a problem inherent in direct-injection gasoline engines and lean-burn engines. In January 1997, Toyota obtained a pioneer patent for this NOx storage system

in Japan and in 10 other countries, including the U.S., Germany, France, and the U.K. A total of around 140 patents have been obtained in Japan and overseas, including those for related technologies; an additional 300 patent applications are currently pending. Toyota has also entered an agreement to license this technology to DaimlerChrysler and Volkswagen.

(b) Substantially reducing pollution from diesel engines Reducing the emissions of NOx, smoke, and particulate matter* (PM) is a major issue in terms of diesel engines. For the Gaia, a model newly introduced in May 1998, Toyota applied such technologies as electronically controlled fuel injection and EGR systems and an oxidizing catalytic converter that reduces the SOF (soluble organic factor) contained in exhaust emissions by at least 50%. These measures reduced the NOx, PM, CO, and HC in exhaust emissions, and helped Toyota’s diesel engines clear the latest exhaust emissions regulations (for 1997/98). Additionally, the adoption of the electronically controlled fuel injection system and a high-efficiency turbo charger reduced smoke emissions — a characteristic of diesel engines — to an imperceptible level even at high altitudes.

In FY1998, a total of 13 series and 24 models, including the Corolla and Corona, met the latest exhaust emissions regulations. They were introduced to the market as cars complying with those new regulations. All these vehicles also achieved Toyota’s voluntary goal of “imperceptible emissions level.”

● Models meeting 1997/98 Exhaust Emissions Regulations and achieving voluntary goal of “Imperceptible Emissions Level” Gaia (CXM10G) Corolla, Sprinter (CE113, CE116, 101G, 102G) Corolla Van, Sprinter Van (CE105V, CE107V) Caldina Van (CT197V, CT199V) Corona (CT211, CT216) Hiace Van (LH162V, LH172V, LH172K, LH182K, LH168V, LH178V, LH188V) Commuter (LH184B, LH186B) Town Ace Noah, Lite Ace Noah (CR40G, CR50G) Town Ace Van, Lite Ace Van (CR42V, CR52V)

*Particulate Matter: Granular material consisting mainly of fly ash and unburned hydrocarbon.

● Trend in the Number of Diesel Vehicle Models Responding to Long-Term Engine Emissions Regulations (1997~1999)

No. of models

40

Assistant Manager Masato Goto, Engine Engineering Div. III, with the NOx storage reduction three-way catalytic converter

30 20 10 0 1997

1998

1999

(year)

25

●Changes in Number of Vehicles Approved as Producing Low Pollution Number of models 120

100

80

60

Disqualification due to tighter standards

40

20

Seventh approval in seven municipalities including Tokyo (July 1998)

Sixth approval in seven municipalities including Tokyo (March 1998)

Fifth approval in seven municipalities including Tokyo (November 1997)

Fourth approval in seven municipalities including Tokyo (July 1997)

Third approval in seven municipalities including Tokyo (March 1997)

Second approval in seven municipalities including Tokyo (November 1996)

First approval in seven municipalities including Tokyo (July 1996)

(September 1995)

Fourth approval in Tokyo (March 1996)

(March 1995)

(July 1994)

Third approval in Tokyo

-20

Second approval in Tokyo

Toyota has set a goal of having all of its vehicles meet voluntary standards on external automobile noise. In FY1998 a total of 18 vehicle series met the newly designated levels. Specific engineering measures were taken to reduce external automobile noise. These include the addition of sound insulation to the engine undercover, higher density hood silencer materials, and thicker plates for exhaust pipe systems, and the use of intake system resonators.

First approval in Tokyo

0

(October 1998)

(3) Reducing external automobile noise

Ninth approval in seven municipalities including Tokyo (March 1999)

Three times during FY1998, seven Tokyo area municipalities and six Osaka, Kyoto, and Kobe area municipalities publicly encouraged automobile manufacturers to submit their vehicles to be certified based on their low-emission vehicle designation systems. Toyota entered its vehicles each time and had 24 models, including the Progrès, Vista, Altezza, and Vitz, newly certified as low-emission vehicles.

Buses and trucks #4 Buses and trucks #3 Buses and trucks #2 Buses and trucks #1 Passenger cars Electric vehicles Cumulative total

Eighth approval in seven municipalities including Tokyo (November 1998)

(c) Twenty-four models certified as low-emission vehicles

-40 Note: The number of certified vehicles decreased after the 7th round because the certification standards were tightened on October 1, 1998, resulting in the cancellation of certification for buses and trucks. For details of the seven Tokyo area municipalities’ low-emission vehicle designation systems, see the FY1998 Environmental Report or visit Toyota’s homepage at http://www.global.toyota.com

● Example of Measures to Reduce Noise Pollution Hood silencer Stainless steel exhaust manifold with separator

Dual intake systems Large-capacity surge tank (rubber floating)

Engine Noise Reduction High-rigidity cylinder block High-rigidity oil pan Plastic head cover with sound insulation

Main muffler with variable valve Triple skins for main muffler

Engine undercover (with sound insulation) Example: Altezza

26

Development & Design

● Noise Reduction Goal Achievement in Passenger Cars (%)

100%

Achievement

100

Goal

80 60 40 (Projection)

20 0 ’97

’98

’99-2001

(FY)

*Achievement refers to the number of vehicle series, within all series (43 vehicle series), that meet stricter regulations. Note: FY1998 breakdown of the 18 vehicle series: Corolla, Carib, Carina, Corona, Vista, Gracia, Windom, Progr s, Altezza, Mark II, Majesta, Crown, RAV4, Ipsum, Nadia, Gaia, Hilux Surf, and Vitz

● Trends in Acceleration Noise of Passenger Cars Voluntary target figure

120

No. of models

100

No. of models in FY1995 No. of models in FY1998

80 60 40 20 0 72

73

74

75

76

77 (dB-A)

Acceleration Noise Level

(4) Using less refrigerant in air conditioners

(5) Reducing substances of environmental concern

Toyota completely eliminated the use of ozone-depleting CFC12 as a refrigerant in car air conditioners and replaced it with an alternative refrigerant. As the next step, Toyota is developing products that require a smaller mass of the new refrigerant. In FY1998, the target was met in all six vehicle series through equipment improvements, achieving an average 20% reduction in refrigerant mass. Although Toyota is continuing to work on the establishment of systems for collecting and recycling HFC134a, and the development of air conditioners that can use a refrigerant with less environmental impact, no significant progress was made in FY1998.

In FY1998, Toyota continued to work toward reducing the use of substances of environmental concern and further tightened control of these substances. Toyota completely eliminated lead from wire harnesses and also began to eliminate lead from wheel balance weights. The voluntary goal of reducing lead in new models to one-half of the 1996 level by 2000 was achieved in all six vehicle series of FY1998 new models. Complete elimination of sodium azide, used as the gas-generation agent in airbags, was achieved in 1998 for all models except the Crown Van (optional equipment) and Mega Cruiser. (Complete elimination was achieved in the above two models in June 1999.) To better manage substances of

environmental concern in the development and design stage, Toyota reevaluated its list of substances to be controlled. The main objective was to strengthen control of chemical substances. As a result the list expanded from 21 to around 320 items. Then, Toyota sent its “Environmental Purchasing Guidelines” to over 450 suppliers and requested that they submit reports detailing the composition of materials currently being supplied to and used by Toyota, and also that they identify the chemicals used in parts. In the future, substances of environmental concern will be controlled based on this revised list.

(6) Improving recoverability In the development and design stage, Toyota is improving recoverability from many angles; it is developing easily recyclable materials, designing easily removable parts, and consolidating and integrating parts, based on the recoverability prior assessment system. The new models introduced in FY1998, and those that underwent a full model change, have adopted recycled materials and new technologies to further enhance recoverability. Materials include thermoplastic TSOP*1, which has excellent recoverability, easily recyclable TPO*2, and high-performance recycled soundproof products (RSPP) reclaimed from shredder residue. Technologies, meanwhile, enhanced both the engine oil removability and the ease of dismantling.

(For reduction of substances of environmental concern and recoverability improvement, please refer to “Recycling” on pp. 50-52. For management of substances of environmental concern, please refer to “Procurement and Production” on page 32.) *1 TSOP (Toyota Super Olefin Polymer): A new thermoplastic polymer with excellent strength and flowability, which does not deteriorate even after multiple recycling. *2 TPO (Thermo Plastic Olefin): An easy-to-recycle plastic and rubber material that is made from carbon and hydrogen, and has thermoplastic characteristics.

27

Development and Promotion of Clean-Energy Vehicles Hybrid Vehicle (HV) Prius — Changing Society’s Consciousness about the Environment The Prius hybrid vehicle, introduced in December 1997, is designed with the environment in mind. It has gained a broad user base as a practical car that matches the performance of regular gasoline or diesel vehicles in all respects. Monthly production capacity of 2,000 cars was reached in June 1998, and a total of 22,000 units were sold by March 1999. Based on this sales record and assuming an annual average distance driven of 10,000 km, the Prius has reduced the CO2 emissions equivalent to the difference in CO2 volumes produced over 110 million km of driving distance compared to gasoline vehicles in the same class. Hybrid vehicles are free from the issues faced by EVs and FCEVs as they do not require the establishment of supporting infrastructures such as charging and dedicated fuel supply stations. They are expected to become mainstream vehicles in the future, with cost-effectiveness and infrastructure rivaling that of gasoline vehicles. Applications for the Prius have expanded from commercial to personal use. Moreover, in April 1999, the scope of the administrative subsidy system designed to promote cleaner-energy vehicles such as the Prius was expanded to include personal-use vehicles. Prius demonstrations and seminars were held in markets throughout the world, including Europe, the U.S., and Asia. Sale of the Prius will begin in Europe and the U.S. in the year 2000.

28

Fuel Cell Electric Vehicles (FCEV) Building a Stronger Organization for Promotion and Early Commercialization Toyota’s FCEV research and development made steady progress in FY1998. Based on the results obtained so far, Toyota began modifying its organization toward early commercialization of FCEVs and established the FC System Development Division in June 1999. Development engineers that once reported to different divisions were integrated into the FC System Development Division. The staff size was increased from 40 to 110, resulting in the establishment of an organization that draws support from the entire Toyota Group. Although early commercialization is the goal, FCEV development also requires close cooperation with other industries such as the energy industry. Toyota therefore plans to carry out a wide range of research and development in various technical areas, including the technologies developed so far.

Compressed Natural Gas (CNG) Vehicle New Camry Engine Developed In 1998, Toyota developed an engine for CNG vehicles and installed it in the Camry, with U.S. sales beginning in the fall of 1999. This CNG engine achieves power train performance close to that of its gasoline engine equivalent, while reducing CO2 emissions by approximately 20% compared to gasoline engines of the same class. It also significantly reduces emissions of NOx, CO, and HC. Moreover, it achieves a city driving range of better than 300 km.

Electric Vehicle (EV) Experimental Operation of EV Commuter System in Toyota City In FY1998, Toyota completed preparations for operation of a new mobility system. It is an EV commuter system that combines the two-person EV “e-com” commuter vehicle, announced in 1997, with the latest ITS technology. Experimental operation began in Toyota City in May 1999. Toyota calls this system “Crayon,” and plans to widely publicize it as a model of an EV-based transportation system that reduces impact on the environment. Toyota will now work to perfect this system for future commercial application.

Pilot operation of EV commuter system “Crayon”

Increased Use of Clean-Energy Vehicles on Company Campus In 1995, the Japanese government decided on a plan to make 10% of all official vehicles clean-energy vehicles. Toyota has since set a goal of making at least 15% of its own vehicles cleanenergy for internal use. By March 1999, Toyota had put 252 clean-energy vehicles — including the Prius —into service (14% achievement rate), and added the “e-com” in May, for a total of 287 vehicles (15% achievement rate).

Development & Design

Number of Clean-Energy Vehicles Sold in FY1998

Cooperation and Tie-ups with Other Companies and Industries

The number and types of cleanenergy vehicles Toyota sold in Japan during FY1998 and their respective market shares were electric vehicles: 93 units (37%); hybrid vehicles: 18,558 units (99.7%); and CNG vehicles: 110 units (8%). The combined total for the three types was 18,761 units, accounting for more than 1% of all Toyota vehicles sold. Of this total, 18,658 units were passenger cars (1.6% of all Toyota vehicles) but only 103 units (0.02%) were commercial vehicles. To help reduce the environmental impact of commercial diesel vehicles, Toyota makes “diesel alternate LPG vehicles” using LPG-powered engines for trucks and trash-collection vehicles. Toyota sells 600 to 700 such vehicles a year. Overseas, Toyota, in cooperation with the State of California, carried out a demonstration program for electric vehicles equipped with advanced batteries, and sold 359 units in 1998.

● Number of Toyota’s Clean-Energy Vehicles Sold (in Japan) FY1997 FY1998 Electric vehicles Hybrid vehicles CNG vehicles

109

93

3,410

18,558

135

110

Subtotal

3,654

18,761

Percentage relative to all Toyota vehicles sold in Japan

0.2%

1.1%

Total number of Toyota vehicles sold 1,846,818

1,678,668

● Total market for all makers (in Japan) FY1998 Electric vehicles Hybrid vehicles CNG vehicles Subtotal

250 18,600 1,400 20,250

Percentage relative to all vehicles sold in Japan

0.3%

Total number of vehicles sold in Japan

5,866,782

* Total of clean-energy vehicles: Partly estimated by Toyota All Toyota vehicles sold in Japan and total number of vehicles sold in Japan: Based on surveys by Japan Automobile Dealer Associations and Japan Minivehicles Associations

Joint Development of EV Charging Systems and Vehicles with GM In order to establish a worldwide standard for EV charging systems, Toyota announced the development of inductive charging systems for electric vehicles jointly with General Motors Corporation in June 1998. A number of companies have EV charging systems, but incompatibility among these systems is still a major issue. The goal of this joint development is to establish a worldwide standard by making the paddle (on the charger side) and the charge port (on the vehicle side) smaller, thus making the charging system easier to install in vehicles. Moreover, in April 1999, Toyota signed an agreement with GM to jointly develop vehicles based on advanced environmental technologies that are appropriate for motorization in the next century. The objective of this agreement is to jointly research and develop vehicles, including FCEVs, EVs, and HVs, that are based on environmentally compatible advanced technologies. Specifically, the agreement covers issues such as: • the adoption of common specifications for electric drive/control components for vehicles with environmentally advanced technology in the future • selection of fuel and approaches to processing it, which are the key to future system designs as well as commercialization of FCEV. This technical agreement is expected to provide great momentum for research and development of vehicles that are based on practical, advanced, environmentally concerned technologies.

Developing Next-Generation Fuels with Exxon Corporation Achieving cleaner exhaust emissions and higher combustion efficiency also requires the development of new fuels. In October 1998, Toyota signed a longterm technical agreement with Exxon Corporation to develop such fuels to help reduce emissions and improve fuel efficiency. The purpose of the agreement is to pool the expertise of the automobile and petroleum industries. Through this joint effort, both companies will contribute to advances in the development of engines and other hardware by automobile manufacturers, and the development of the fuels and lubricants that will be required to operate such hardware. It is a major challenge to develop a next-generation automobile system that not only substantially reduces exhaust emissions and improves fuel efficiency, but also makes an extremely small impact on the environment. Toyota and Exxon will work together to meet this challenge.

Toyota Executive Vice President Akihiro Wada, (currently Chairman of Aisin Seiki Co., Ltd.), and W.R.K. Innes, President of Exxon Research and Engineering Company, at the signing ceremony

29

Development & Design

Number of Clean-Energy Vehicles Sold in FY1998

Cooperation and Tie-ups with Other Companies and Industries

The number and types of cleanenergy vehicles Toyota sold in Japan during FY1998 and their respective market shares were electric vehicles: 93 units (37%); hybrid vehicles: 18,558 units (99.7%); and CNG vehicles: 110 units (8%). The combined total for the three types was 18,761 units, accounting for more than 1% of all Toyota vehicles sold. Of this total, 18,658 units were passenger cars (1.6% of all Toyota vehicles) but only 103 units (0.02%) were commercial vehicles. To help reduce the environmental impact of commercial diesel vehicles, Toyota makes “diesel alternate LPG vehicles” using LPG-powered engines for trucks and trash-collection vehicles. Toyota sells 600 to 700 such vehicles a year. Overseas, Toyota, in cooperation with the State of California, carried out a demonstration program for electric vehicles equipped with advanced batteries, and sold 359 units in 1998.

● Number of Toyota’s Clean-Energy Vehicles Sold (in Japan) FY1997 FY1998 Electric vehicles Hybrid vehicles CNG vehicles

109

93

3,410

18,558

135

110

Subtotal

3,654

18,761

Percentage relative to all Toyota vehicles sold in Japan

0.2%

1.1%

Total number of Toyota vehicles sold 1,846,818

1,678,668

● Total market for all makers (in Japan) FY1998 Electric vehicles Hybrid vehicles CNG vehicles Subtotal

250 18,600 1,400 20,250

Percentage relative to all vehicles sold in Japan

0.3%

Total number of vehicles sold in Japan

5,866,782

* Total of clean-energy vehicles: Partly estimated by Toyota All Toyota vehicles sold in Japan and total number of vehicles sold in Japan: Based on surveys by Japan Automobile Dealer Associations and Japan Minivehicles Associations

Joint Development of EV Charging Systems and Vehicles with GM In order to establish a worldwide standard for EV charging systems, Toyota announced the development of inductive charging systems for electric vehicles jointly with General Motors Corporation in June 1998. A number of companies have EV charging systems, but incompatibility among these systems is still a major issue. The goal of this joint development is to establish a worldwide standard by making the paddle (on the charger side) and the charge port (on the vehicle side) smaller, thus making the charging system easier to install in vehicles. Moreover, in April 1999, Toyota signed an agreement with GM to jointly develop vehicles based on advanced environmental technologies that are appropriate for motorization in the next century. The objective of this agreement is to jointly research and develop vehicles, including FCEVs, EVs, and HVs, that are based on environmentally compatible advanced technologies. Specifically, the agreement covers issues such as: • the adoption of common specifications for electric drive/control components for vehicles with environmentally advanced technology in the future • selection of fuel and approaches to processing it, which are the key to future system designs as well as commercialization of FCEV. This technical agreement is expected to provide great momentum for research and development of vehicles that are based on practical, advanced, environmentally concerned technologies.

Developing Next-Generation Fuels with Exxon Corporation Achieving cleaner exhaust emissions and higher combustion efficiency also requires the development of new fuels. In October 1998, Toyota signed a longterm technical agreement with Exxon Corporation to develop such fuels to help reduce emissions and improve fuel efficiency. The purpose of the agreement is to pool the expertise of the automobile and petroleum industries. Through this joint effort, both companies will contribute to advances in the development of engines and other hardware by automobile manufacturers, and the development of the fuels and lubricants that will be required to operate such hardware. It is a major challenge to develop a next-generation automobile system that not only substantially reduces exhaust emissions and improves fuel efficiency, but also makes an extremely small impact on the environment. Toyota and Exxon will work together to meet this challenge.

Toyota Executive Vice President Akihiro Wada, (currently Chairman of Aisin Seiki Co., Ltd.), and W.R.K. Innes, President of Exxon Research and Engineering Company, at the signing ceremony

29

Specifications

GFJCG11

Model Engine

GFSXM10G

KHCXM10G

GFSV50

GFZZV50

GFSXN10

GFSXE10

Vitz

Altezza GFSXN10

GFGXE10

GFSCP10

Gasoline Gasoline

Diesel

Gasoline Gasoline Gasoline Gasoline Gasoline Gasoline Gasoline (D4) (D4)

2JZ-GE

3S-FE

3C-TE

3S-FSE

1ZZ-FE

3S-FSE

3S-FE

3S-GE

1G-FE

1SZ-FE

VVT-i

❍

...

...

❍

❍

❍

...

❍

❍

❍

Supercharger

...

...

❍

...

...

...

...

...

...

...

4AT

4AT

4AT

4AT

4AT

4AT

4AT

6MT

4AT

4AT

Transmission Weight (kg) Start of Sales

1480 May 98

Material that Destroys Ozone CFCs

1420 1470 May 98

1310 1240 July 98

1350 1370 Aug. 98

1360 1330 Oct. 98

880 Jan. 99

Not used Not used Not used Not used Not used Not used Not used Not used Not used Not used

HFC (g) [used in cooler refrigerants]

600

800

800

500

500

500

500

600

600

430

CO2 (g/km) [10-15 mode]

236

203

...

153

157

166

200

203

203

120

Fuel Efficiency (km/L)

0-15 mode 60km/h standard

10.0 16.8

11.6 19.3

... 22.2

15.4 28.0

15.0 24.0

14.2 22.4

11.8 19.1

11.6 18.2

11.6 18.5

19.6 30.0

Noise (Acceleration noise) (dB-A)

Adapted regulation figures Other basic figures

76 75

76 75

76 75

76 74

76 75

76 75

76 75

76 75

76 75

76 74

❍

...

...

...

❍

...

❍

...

❍

❍

❍

...

...

...

❍

...

❍

...

❍

❍

... ❍

... ❍

❍

... ❍

... ❍

... ❍

... ❍

... ❍

... ❍

... ❍

Exhaust Emissions (Note 2)

Gas with Global Warming Effects

Certified as LEV Specified System (Note 1) [50% Reduction from present regulation figures] Adapted to Future Gasoline Regulation Level [70% Reduction from present regulation figures] Adapted to the current restriction value for diesel-engine cars Adapted to the current restriction value for gasoline-engine cars Lead (Compared with the 1996 figure)

Substances of Environmental Concern Used in Parts

Mercury (Discharge tubes for lights) Cadmium (Electronic control parts) Sodium Azide

Recycle (Note 3)

...

Used (less than half) Extremely small amount Extremely small amount

Used (less than half)

Used (less than half)

Used (less than half)

Used (less than half)

Extremely small amount

Extremely small amount

Extremely small amount

Extremely small amount

Extremely small amount

Extremely small amount

Extremely small amount

Extremely small amount

Not used

Not used

Not used

Not used

Not used

Used (less than half) Extremely small amount Extremely small amount Not used

❍

❍

❍

❍

Usage of bumper recycled materials collected by ❍ ❍ dealers (Note 4) Usage of RSPP sound... ... proof materials Usage of TSOP materials Bumpers Bumpers and interior/ and interior/ exterior parts that are easy to recycle exterior parts

* Basically, the data above relates to best selling grade. For the Vista, Nadia, and Altezza, two types under each model are covered because they carry different gasoline engines, so that one can compare the data on the two types of each model. Note 1: Related to the scheme for designating low air pollution cars in seven prefectures and cities throughout Japan (including Tokyo), as well as the scheme for designating low air pollution cars in six prefectures and cities in the Keihanshin district. Note 2: Level of emission gases from passenger cars (see below)

Gasoline Passenger Car Emissions Level (10-15 mode)

LEV Specified System

Future Regulation Figures

Present Regulation Figures

Carbon Monoxide (g/km)

2.1

2.1

0.67

2.1

Hydrocarbon (g/km)

0.25

0.25

0.08

0.4

Nitrogen Oxide (g/km)

0.25

0.12

0.08

0.4

...

...

... ... ❍ ❍ Bumpers and interior/ Bumpers and interior/ Bumpers and interior/ Bumpers and interior/ exterior parts exterior parts exterior parts exterior parts Note 3: The data regarding recoverability rate is intentionally omitted from the above data sheet because its international definition has not been established (even as of fiscal 1998). Toyota, however, has already established its own standard and is making efforts to recover more end-of-life vehicles. Note 4: Where to use bumpers recovered by dealers as recycled materials (see below)

Progr s

Engine undercover, fuel filler pipe protector, luggage compartment trim cover, rear bumper side seal

Gaia

Bumper extension

Vista

Back door trim cover

Nadia

Bumper extension

Altezza

Engine undercover, fuel filler pipe protector, floor cover, luggage compartment trim cover

Vitz

Radiator support opening seal, back door trim, rear bumper side seal, engine undercover

Diesel

Present Regulation Figures

Particulate Matter (g/km)

30

Nadia

Vista

Name

Gaia

Progr s

● Environmental Data for FY1998 New Models and Model Changes (Passenger Cars)

...

0.08

Development & Design

■ Development Results: The Vitz Achieves the Lowest Fuel Consumption in the 1L Class as a New-Generation Small Car

The Vitz Establishes a Benchmark for Next-Generation Small-Class Vehicles Incredible Efficiency Yields Low Fuel Consumption In today’s world, the relationship between the automobile and “the people, the community and the environment” is changing dramatically. Responding to this unfolding process, Toyota has once more drawn on its vision of the ideal small car to produce the Vitz, “the new global benchmark in small-class vehicles.” The starting point for this achievement is uncompromising efficiency, precisely crystallized in a small vehicle body. One of the key objectives of the Vitz was to achieve fuel efficiency of approximately 20km/L with an automatic transmission (in Japanese 1015 driving mode). Vital to achieving this demanding target was a threepronged approach of developing a highly efficient power unit, reducing the weight of the vehicle, and decreasing running resistance. Failure in any one of these areas would render the target unachievable. According to Chief Engineer Yasuhiko Ichihashi, “One of the greatest achievements in developing the Vitz was that we were able to resolve the issue of weight reduction efficiently. The Vitz is the result of strenuous efforts to solve these obstacles steadily and patiently, one by one.”

Existing Standards for CO, HC and NOx Exceeded by More Than 70% The Vitz incorporates a new, extremely lightweight 68kg, in-line four-cylinder, 1L class engine. To reduce fuel consumption, combustion efficiency was improved, friction losses decreased and components made more compact and slimmer, resulting in a thoroughly lightweight and smaller vehicle.

The driving force behind the development of the Vitz: Director Shuhei Toyoda (right) and Chief Engineer Yasuhiko Ichihashi (left)

This model also combines a number of innovative features that render the exhaust emissions dramatically cleaner. The fuel injection system features a fuel atomizing injector and independent control of each cylinder for the optimal arrangement of catalysts, thus reducing the exhaust emissions generated immediately following a cold engine start. This level of performance anticipates the new regulations for 2000. In fact, according to tests conducted under Toyota’s own measurement procedures, the Vitz achieves reductions in CO, HC and NOx that exceed current regulations by more than 70%.

Thorough Pursuit of Resource Conservation and Recoverability Vitz boasts a high-strength, highrigidity body that weighs less than 900kg, showcasing Toyota’s unwavering commitment to resource conservation and recoverability. Each component of the Vitz features a higher-than-ever proportion of recyclable materials, such as the thermoplastic resins TSOP and TPO, and the high-performance recycled soundproofing material RSPP. Careful attention was also paid to

such details as easy removal of engine oil, as well as easy dismantling of wire harnesses and seats. The front and rear bumpers were designed for easy disassembly into two parts (top and bottom), and headlights and other lights were built to enable lenses to be easily removed. These measures entail highly economical use of resources during repair of the vehicle. The design of the Vitz strives for the thoroughgoing elimination of wasteful elements and a well-balanced mix of optimum performance in each of the vehicle’s criteria. Through its undivided focus on streamlined design, the Vitz points the way in developing cars with consideration to the environment. The Vitz approach was summed up expertly by Shuhei Toyoda, the first Chief Engineer in charge of Vitz development and currently the General Manager of the Takaoka Plant, which produces the Vitz: “In developing the Vitz, we pursued the highest ideals in safety while reducing the car’s weight as far as technology would allow. We believe that this car, the recipient of commendations such as the ‘Engine of the Year Award’ in Europe, has created a new global benchmark.”

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