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Toyota’s supply chain quandary

With the EV transition accelerating, is the automaker’s legendary supply chain a liability or an asset?

With great fanfare last month, Toyota put on an event showcasing its planned next generation of internal combustion engines, the clearest demonstration yet of its bet on the hybrid boom.

Beyond the immediate need to convince investors and analysts, Toyota’s chief executive and chief technology officer had another audience in mind too: the group’s suppliers.

“It is important for us to make clear which direction we are going to create a future together with these companies. That is why we declared today that we want to create together the future for internal combustion engines,” said Koji Sato, Toyota’s chief executive.

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