Toyota may see turbo development as a very short term solution if it's future is in hybrids and eventually full electric. So for them, why spend time and money developing turbo engine tech if it's going to be niche and short term? If what they say is true, then our current desire to have small displacement + turbo doesn't fit with what Toyota's research reflects.
Phase 1. Past preferred - Naturally aspirated large displacement (<22mpg)
Phase 2. Currently preferred - NA small displacement + direct injection (22-34mpg)
Phase 3. Near future (next 5 yrs) preferred - Small displacement + Turbo (22-34mpg)
Phase 4. Mid future (next 10-15 yrs) preferred - Hybrid (Atkinson NA + Electric) (40-60mpg)
Phase 5. Long tail (next 15-20 yrs) preferred - All electric (>100+ empg)
Toyota skips phase 3, and introduces phase 4 while other mfgs are in still in 3. Leapfrogs the market again on electric technology. This is what Tesla is hoping to do and is semi-succeeding with (jumping to phase 5, but with too many mass market limitations (mostly range, recharge time etc). IMO Tesla's tech will likely be acquired by a major auto mfg if they're not forced out of the market first. Possibly even by Toyota who would be ready to mass market phase 5 with it's headstart in phase 4 (but Tesla's future is another discussion). Thoughts?
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