Why Hybrids "Are Here to Stay" 
 Toyota's Takehisa Yaegashi led the team that
 developed the Prius. He explains how his
 doubts back then have given way to certainty 
 JUNE 20, 2005 
 http://www.businessweek.com/magazine/content/05_25/b3938028.htm 

 Interspersed with Camry sedans in red and
 blue and black, some of the greenest cars ever manufactured -- fuel
 efficient Prius hybrids -- glide down assembly lines at Toyota Motor
 Corp.'s Tsutsumi plant in Toyota City, Japan. There, production hums
 along as workers install brakes, dashboards, and -- for the Prius
 models in the mix -- giant battery packs under the back seats. The
 smashing success of the Prius, which now boasts long waiting lists at
 many dealerships in the U.S., is testimony to the ingenuity of the
 Japanese engineers who toiled in the 1990s to make gas-electric
 hybrid vehicles more than a futuristic pipe dream. 

 At Toyota, Takehisa Yaegashi is known as "father of the hybrid" for
 his role as head of the Prius project. The soft-spoken 62-year old,
 now Toyota's senior manager of hybrid engine development, recently
 spoke to BusinessWeek's Chester Dawson about Toyota's effort to
 mass produce hybrids. Following are edited excerpts: 

 Q: Why was Toyota first to bring mass-produced hybrids to
 market? 
 A: It all started about the time there was talk of much stricter
 emissions regulations in California back in the early 1990s. But [what
 became known as] the G21 project was about much more than that. It
 was about developing an all new vehicle package -- a midsize
 compact for many markets globally, not just the U.S. Of course, the
 stricter environmental regulations in the U.S. were a big incentive to
 go ahead with the project. 

 We didn't think about hybrids at first because the initial goal was a
 50% improvement [in fuel efficiency over an average car], but once
 our top executives made it clear they wanted much more than that, it
 became apparent that only a hybrid could achieve that type of target.
 At the time, the majority of our efforts and those of Detroit had been
 focused on electric vehicles. But we had hit a wall with electric
 vehicles [due to limits to existing battery technology]. Hybrids began
 where EVs ended. 

 Q: Back then, how confident were you of success producing a
 mass-market hybrid? 
 A: All of the senior engineers had doubts about the program,
 including myself. We didn't think there was zero chance of success in
 meeting the goals outlined for us, but the feeling was that it was
 somewhere less than a 5% probability of succeeding. 

 We didn't have any blueprints to follow. Feasibility studies and a lot of
 fundamental research were clearly needed, but instead we were told
 to jump right into mass production of a vehicle for consumers. There
 were no existing studies, and yet [in 1995] we were given a two-year
 deadline for completing a car. Is it any wonder we doubted? 

 Q: What was the hardest part involved in bringing a hybrid to
 life? 
 A: The chief challenge involved cracking a lot of tough
 system-integration riddles. And the size and shape of a car is fairly
 limited so new ways had to be found to cram a lot of equipment into a
 small package. Then there were safety issues involving the addition
 of an all-new energy source to the engine compartment in the form of
 the high-voltage battery. 

 Managing the energy flow was a major issue. How to do that safely --
 and in a shape that wouldn't freak out customers -- required an
 advanced computer control system. We did a lot of that in the course
 of developing the Prius with computer simulations. 

 Q: As first to market, how confident were you that consumers
 would buy a hybrid car? 
 A: Any car has got to appeal to consumers, first and foremost. In
 order to bring down the cost of hybrids, they must be popular enough
 to produce on a mass scale. But we really didn't have enough time to
 finesse the [quirky] styling and driving performance of the
 first-generation Prius to make it attractive enough for most car
 buyers. Our feeling at first was that it would have a limited appeal
 anyway [because of the price premium]. We wondered if anybody
 would want one. But car buyers have embraced the technology. 

 Now I feel more strongly than ever that with the right package, there's
 plenty of demand for hybrids. They're here to stay. In principle, there's
 no reason why hybrids can't be offered on all models. But how much
 the costs come down will be the ultimate determinant of how far
 hybrids penetrate into mainstream vehicles. 

 Q: Why was the original Prius only sold in Japan for the first
 two years? 
 A: One key challenge was getting the car to work in all weather and
 under all driving conditions. It took a couple of more years [after
 1997] before we felt comfortable selling the Prius overseas. In tests
 of prototype vehicles in Europe and the U.S. we found we couldn't
 cover all driving conditions. For example, the scorching temperatures
 of the Arizona desert and soaring altitudes of Colorado mountain
 passes presented a lot of challenges for the hybrid engine. We had
 reports of prototypes suddenly losing power in those conditions. 

 Frankly, we couldn't guarantee the initial Prius vehicles could be
 operated safely in those areas. There were a lot of "turtles" on our
 dashboards back then. The turtle indicator was included only in the
 first-generation Prius. It was mostly an issue only with some of the
 very first Prius vehicles ever made. By the time we released the car
 in the U.S., it had became something of a game to try to drive the car
 hard enough to get the turtle to make an appearance. By the second
 generation we'd worked out all the glitches, and the turtle gauge was
 retired. 

 Q: What's next for hybrids? 
 A: Improving driving performance and those intangibles involved in
 driving pleasure is the next frontier for hybrids. We are aiming for
 smoother performance by limiting power loss. We want to make
 hybrids run faster and smoother than gas engines alone are capable
 of running. If we can harness more of the power lost to inefficiencies,
 it will not only increase speed but also increase vehicle stability
 control. We aren't looking backwards. The future will bring more and
 more hybrid models. 

 Q: Aren't fuel-cell-powered vehicles the next big thing? 
 A: Fuel cell vehicles are going to be so expensive for the
 foreseeable future -- no matter what some auto makers may say --
 that the optimistic scenario of skipping hybrids and going directly into
 the production of fuel-cell vehicles is completely off base. Mass
 production of a hybrid gas-electric vehicle alone took all sorts of new
 technology. Devising a control system to fit all the parts together was
 a major undertaking. 

 There is no way to succeed in fuel-cell vehicles without going through
 the stage of producing gas-electric hybrids. Only by achieving
 economies of scale with gas-electric hybrids can the mass
 production of fuel-cell vehicles become a real possibility one day. It's
 just impossible to even consider jumping over gas-electric hybrids
 directly into fuel cells. 

 It's pretty clear now the big American and European auto makers
 have finally had to bow to that reality with their recent moves to
 reverse course and fast track hybrid development.

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