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| Sato, pictured here in 2016, is best known as the chief engineer of the super sleek Lexus LC sports coupe. |
Addressing technology trends will be a huge challenge. How will Lexus look in 2030?
All the DNA of Lexus was in our debut model, the first-generation LS [from 1989], which was quiet, comfortable and well crafted. These three elements are our core. As we enhance our brand in the next 10 years, we want to always provide a better experience for our customers. In the past, people talked about the car based on its specifications: This car has this fuel economy, or this acceleration time. Today the customer really wants to have a better experience. That means we need to provide more emotional value, and that can't be measured.
How will Lexus increase the emotional appeal of its vehicles?
Our engineers are working hard on this. On one hand CASE [connected, autonomous, shared, electric] will have a big impact on the entire automotive industry, not just Lexus. But we still want to be unique and never lose sight of our brand direction to make sure we are not making a commodity. People have said that automated driving will make a car less enjoyable, but I don't think so. For example, later this year we will introduce our first-generation automated drive [based on Toyota's Automated Highway Teammate]. This development is always trying to determine how the customer feels about it. It's OK that everything is controlled by computers. I don't want to say it's easy [to manufacture], but anyone can do it. But, if the car enters a corner at high speed, how do you feel? We want to create a unique driving behavior, even if it's in automated mode. That helps us create our uniqueness.
Electrified technology is the same. The current questions about electrified vehicles include: What is the range? What is the battery? This is common sense. But if you think about the future, we need to create additional value. Enjoyment is one. One example is the advanced traction control in the LF30 concept [revealed at the 2019 Tokyo auto show]. That is one of the key areas where we can create this unique vehicle behavior. We should never forget the fun-to-drive aspect. Some people will say the car will be a commodity, but we don't think so.
Will we see a car by the end of the decade with an electric motor in each wheel like the RF30 concept?
This concept hints at our direction by the end of 2030. We want to realize this car, but we know some elements present some technical difficulties. This is the challenge. We believe if we set the bar high, all the engineers will work to fill the gap. This is the style of Lexus.
Lexus launches its first EV, the UX 300e compact SUV, at the end of this year in Europe. Where else is this car going?
China, Japan and some Asian countries. But the main focus is Europe and China because of high demand and [emissions] regulations.
Why not the U.S.?
We sell UX in the U.S., but there is no plan to introduce an EV variant because there is no demand there and the regulation situation is different. Our fundamental strategy for electrified technology is "Right place, right timing, right price."
Lexus is launching its first autonomous-capable car this autumn. Which level is it?
It will start from Level 2 but it will have over the air (OTA) updates so that in the future we will update the level. Regulation as well as social concerns may affect what level we can produce in the real world, so we need to consider customers' expectations and how society will adapt.
Will the customer be asked to pay extra for the update?
It's not decided yet.
Will it use lidar?
Yes.
Will automation be restricted to a specific vehicle or is it something that will roll out across your range?
Automated drive technology is not just focusing on the super high level. Our target is to expand it to a wide range of vehicles. It will be applied next year for the first-generation automated drive vehicle and after that we will roll out the technology to other vehicles.
Which car and which market will be first to get the technology?
We haven't announced that yet. [Lexus showed a LS sedan concept in 2017 that previewed its automated technology planned for 2020.]
The autonomous technology will be upgradable over the air (OTA). When do you plan to offer OTA?
It won't be this year, but sometime in the future. The car that debuts this autumn will be OTA-ready, but OTA itself will not happen this year.
What opportunities are there to create new revenue streams via over-the-air solutions?
One example is upgrading to automated drive, but also customization and also service parts.
Could you give an example?
One example -- and this is just an idea -- the customer could upgrade the driving character, the suspension settings or aerodynamics that are linked to performance and make them fit their own tastes. They could download this. Technology improvement never stops. At launch the technology is at the perfect level, but, of course, we will never stop so we will find new solutions.
Will Lexus launch a hydrogen car by the end of the decade?
We are investigating the technology. Hydrogen is one of the solutions for the future. It can be stored, and the charging speed is the same as filling up with gasoline.
What share of Lexus sales are SUVs and will the share continue to grow?
Globally, SUVs account for about 65 percent of our sales. Our highest volume is in the U.S., where they represent 60 percent to 70 percent of our sales. Europe is 80 percent and China is about 50 percent. We think this trend will continue for another five years or so but after that, maybe SUVs will be on the ropes and people will want something new. We need to prepare for something other than the SUV over the next 10 years. The LF30 concept is one proposal for that.
Your SUVs are quite traditional in terms of body style, while your German competitors are offering a growing range of SUV coupes. Will Lexus also join this niche?
We will not expand our vehicle lineup to fit the trend.
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| Lexus needs to prepare for what comes after the SUV surge cools, Sato said. The LF30 concept is an example of how Lexus may react |
By 2025.
What are the target markets?
We are thinking globally.
Other manufacturers of premium large SUVs have been very quick to add plug-in hybrids. Why has Lexus been slow into this niche?
We believe the hybrid will need additional work if you are thinking long term. It's easy to just put in a big battery, but our priority is to fundamentally improve the entire hybrid system. That will help us apply the technology to battery-electric vehicles and fuel-cell vehicles. That's the main reason why we are taking our time. It's about priorities. Compared with other brands we already have low CO2.
Lexus doesn't make vehicles in Europe. Would you like to add production in the future, possibly using a Toyota plant?
To produce vehicles in Europe, we would need to reach a certain volume. That being said, we continue to believe that our main Lexus factories should be in Japan, because one of our identities is Takumi craftsmanship [an artisan philosophy of applying a human touch to all aspects of Lexus design and development]. We are really proud of that.
Could Lexus add a model below the UX?
We need to investigate whether there is any opportunity in the B-segment [small segment]. We are not sure right now. Many car manufacturers go into this segment but sometimes disappear so it's complicated. It's a very difficult part of the market because the business is fractured globally. It's mainly Europe and some Asian countries, including Japan, but the U.S.? No chance.
Could it work as electric only?
There is some opportunity. Many manufacturers are developing short-range EVs for this segment.
europe.autonews.com
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