New Powertrains. Hirohisa Kishi. December 6, Executive Vice President, Power Train Company Managing Officer, Toyota Motor Corporation

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1 1 New Powertrains December 6, 2016 Hirohisa Kishi Executive Vice President, Power Train Company Managing Officer, Toyota Motor Corporation

2 Contents 2 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

3 3 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

4 Powertrain development themes 4 Achieve both outstanding driving performance and high environmental performance Direct and Smooth Change Toyota s driving performance

5 Performance of new powertrains 5 Achieve both better driving performance and better environmental performance Fuel economy (U.S. combined fuel economy) (contribution by powertrain) Conventional engine-powered vehicle 20% improvement Dynamic Force Engine (2.5-liter) & Direct Shift-8AT 12% shorter Current powertrain (2AR-FE + 6AT) Acceleration time (contribution by powertrain) Fuel economy (JC08 test cycle fuel economy) (contribution by powertrain) 20% improvement HV Dynamic Force Engine (2.5-liter) & New THS II 10% shorter Current system (2AR-FXE + THS II) Acceleration time (contribution by powertrain) New powertrains achieve approx. 20% improvement in fuel economy and 10% or greater improvement in dynamic performance

6 Improved powertrain efficiency 6 Fuel Work Cooling loss Exhaust loss Pump loss Mechanical loss Engine Transmission Improved thermal efficiency Improved transmission efficiency Toyota has long sought maximum improvements in engine and transmission efficiencies

7 Powertrain evolution targeted by TNGA 7 Engine torque THS CVT AT Max. torque performance curve Most-efficient driving line 1. Improved maximum thermal efficiency (deeper) 2. Expanded high fuelefficiency area (wider) 3. Improved engine torque 4. Use of high efficiency area (wider gear range) 5. High-responsed control Engine rpm Improve and maximize efficiency of powertrain systems (engines/transmissions/hv systems)

8 Maximizing system efficiency of new powertrains 8 Current powertrain 2.5-liter engine + 6AT Dynamic Force Engine (2.5-liter) Direct Shift-8AT Torque [Nm] Torque (Nm) Range used during driving

9 Performance of new powertrains Direct & Smooth 9 1. Start Smooth starting performance in line with driver intentions 2. Following Linear and highly responsive driving 3. Overtaking Rhythmical and comfortable acceleration Accelerator opening Vehicle forwardbackward G Target image Start Acceleration Deceleration Following Acceleration Cruising Deceleration Targeted forward-backward G (image) Improved engine torque High responsiveness Expanded lock-up control range Time Present state Time Conversion to multi-shift Evolution of transmission control Makes possible driving in line with driver s intentions

10 Performance of new powertrains Direct & Smooth Example of linear road performance accurately responding to driver intentions 10

11 Performance of new powertrains Direct & Smooth Example of rhythmical and pleasant acceleration 11

12 12 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

13 New engines 13 Dynamic Force Engine (2.5-liter)

14 Concept of new engine development 14 Environmental performance Improved thermal efficiency Direct & Smooth 1) Loss reduction Reduced exhaust loss Reduced cooling loss Reduced pumping loss Reduced friction 2) Improved combustion quality 3) Improved intake efficiency Evolution of fundamental technologies Creation of common architecture through TNGA

15 Concept of common architecture Optimal combustion 2. Creation of common architecture for physical quantities 3. Modularization of design specifications 4. Rollout to all engines Create common architecture for optimal combustion that allows achievement of a high level of power and fuel economy Adopt and modularize design specifications that allow other engines to similarly achieve optimal combustion Rapid rollout to all engines

16 Common architecture of new engines 1. Optimal combustion 2. Adoption of common architecture for physical quantities 16 High Air volume Intake efficiency (Coefficient of airflow volume) Top trend Toyota Competitors 2AR-FE Current Toyota high thermal efficiency engine Target of new engines Internal cylinder pressure Established common architecture for optimal combustion waveform Target of new engines Current engines Cylinder air tumble flow (Tumble ratio) Combustion speed Fast Crank angle Achieved optimal combustion through high intake efficiency and high tumble flow of air in cylinder and established common architecture for these combustion conditions (this combustion waveform)

17 Technologies for achieving common architecture 17

18 Structure for modular expansion of optimal combustion 3. Adoption of design performance specifications that can be applied to modular expansion Ideal structure of ports and combustion chamber High airflow coefficient Tumble flow Laser-cladded valve seat (Development of new construction method) High tumble & high-efficiency intake port Expansion of narrow valve angle to approx Expansion to all engines Small 18 Stroke/bore ratio approx. 1.2 Medium High tumble Large Expansion of optimal combustion through modularization of intake port shape, stroke/bore ratio, etc.

19 Development of engineering techniques and materials that enabled optimal combustion 19 Laser-cladded valve seat Development of new engineering technique Laser-cladded valve seat Development of new seat materials Laser cladded valve seat Copper-based alloy Hard particles Cylinder head * Laser-cladding refers to a technology for laser-melting of metal filings which are then used to coat the base material Development of new seat materials with high wear resistance and heat resistance Expansion to all new engines of laser-cladding engineering techniques and material technologies, which underpin high tumble ratio/high-efficiency port technology

20 Technologies used in new engines 20 VVT-i(Exhaust) VVT-iE (Intake) IN-VVT delayed-closing control Optimization of bore/stroke ratio High tumble ratio, High-tumble high-efficiency port port Laser-cladded valve seat Widened angle between intake and exhaust valves Multi-hole direct injector (new D-4S) High compression ratio Contributes to improved fuel economy, output, and low exhaust emission Atkinson cycle High-volume cooled EGR Contributes to improved response Compact hydraulic lash adjuster Small-concave-profile camshaft Tumble-maintaining shape, lightweight pistons High-strength connecting rod High-response EGR valve Cylinder heads with built-in EGR cooler function New-structure Water jacket water spacer jacket with Expat spacer Motor-driven water pump Low-friction chain Improvement of piston skirt surface Resin-coated bearings Contributes to improved quietness and steering stability Balancer Optimization of mount layout Electrical control thermostat Continuous variable-capacity oil pump Airflow shutoff valve Contributes to improved fuel economy and output Adoption of numerous other new technologies for major evolution of current engine on all fronts

21 Performance of new engines 21 Specific power (kw/l) (maximum output /displacement) Toyota Competitors Current trade-off line Future trend 40% Dynamic Force Engine New 41% Engine 50 New Engine HV 40 Current Toyota high thermal 30 efficiency engine Maximum thermal efficiency (%) Achieves one of the world s best levels of both output and thermal efficiency

22 Performance of new engines 22 Output and torque curve Exhaust performance Dynamic Force Engine Current engine Torque (Nm) Output (kw) PM particle count -60% Engine rpm (rpm) Current New Improved output and torque through optimal combustion and achieved cleaner exhaust

23 23 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

24 New Transmissions 24 Direct Shift-8AT (for front-wheel-drive vehicles) Direct Shift-10AT (for rear-wheel-drive vehicles)

25 Concept of new transmission development 25 Environmental performance Improved transmission efficiency Exploitation of high-efficiency engine range Direct & Smooth Rhythmical and highly responsive gear changes

26 Concept of the new transmission development 26 Improved transmission efficiency Reduced mechanical loss (ultra-finished tooth surface processing technique, etc.) Exploitation of highefficiency engine range Expanded lock-up* range * Direct linking of engine and transmission Rhythmical and highly responsive gear changes Conversion to multi-shift (wider gear range)

27 One of world s best transmission efficiencies 27 Transmission Efficiency Current 4AT Technology for achieving high-efficiency gears, clutch, etc. Current 6AT Direct Shift-8AT Multi-gearing using increased number of parts reduces efficiency Direct Shift-10AT Gear-ratio Range Achieves one of world s best transmission efficiencies

28 Technology to improve transmission efficiency 28 Gears with ultra-finished tooth surfaces Lubrication oil flow reduction Gear rotation disturbance reduction Off-Axis chain drive Oil pump Compact 8-speed gear train Gear spread expansion Line Oil pressure reduction Liner Solenoid oil leak amount reduction Gera tooth super finishing Tapered roller bearing loss torque reduction Friction plate loss torque reduction No One-Way-Clutch -> loss torque reduction Thrust bearing loss torque reduction Lubricating oil Current tooth surface Ultra-finished tooth surface Smoother tooth surfaces and longer lubricant life Gears with ultra-finished tooth surfaces achieved through fusion of newly developed design technology and production technology

29 Initiatives to expand lock-up range 29 Key points for achieving goal Whole-vehicle vibration-suppressing technology Vehicle vibration model Booming noise and vibration Exhaust system Powertrain model Vehicle body model Mount system Engine force Drive system Setting of design specifications Vibration A/S トルク変動 level Target Target Vibration level Engine rpm Comprehensive use of MBD (model-based development) for the entire whole vehicle and powertrain to reduce vibration and noise and expand lock-up range

30 Technology that enabled expansion of lock-up range 30 Optimal inertia distribution throughout AT gear train High engine revolution area (red) Low engine revolution area (blue) 高性能 New torque converter ー High-ratio damper Improved vibration-reduction performance Optimizing gear train layout ensured necessary rotary inertia for reducing vibration with equivalent weight Torque converter structure Multi-disc lock-up clutch Increased torque and more compact Improved response and control Ultra-compact flat torus Optimized inertia distribution throughout AT gear train and developed new compact torque converter that achieves high level of vibration-damping performance

31 Improved response feel through expanded lock-up range 31 Expanded lock-up control range Improved response feel Vehicle speed (km/h) Current AT Direct Shift-8AT/10AT Time (sec) Comparison of lock-up times in U.S. test cycle Vehicle speed Engine rpm Current AT Direct Shift-8AT/10AT Reduced sudden revolution increases Time Reduced irregularity in number of revolutions Time Expanded lock-up range at all gear change levels for improved response feel

32 Rhythmical and pleasant acceleration through conversion to multi-shift 32 Direct Shift-10AT (for rear-wheel-drive vehicles) Equally spaced gear changes Close gear setting to create rhythm Engine rpm Direct Shift-10AT Current AT 2nd 3rd 4th 5th Current Time Current AT Direct Shift-10AT Close-gear step creates rhythmical and pleasant acceleration feel

33 Smooth gear changes among world s quickest 33 Direct Shift-10AT (for rear-wheel-drive vehicles) Shift Gear change operation start Direct Shift-10AT Current technology Engine revolutions Rate of acceleration Gear change finish Shock Gear change time (sec.) Direct Shift-10AT 0.23 Competitor s premium sports car A 0.35 Competitor s premium sports car B Technologies employed Engine & transmission made highly responsive (high-response solenoid valve, direct pressure hydraulic circuit, etc.) Powertrain model-based integrated control Making hardware and control highly responsive led to gear changes that are among the quickest in the world yet smooth and crisp

34 34 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

35 New Hybrid Systems 35 THS II for 2.5-liter engines Multi-stage THS II

36 Environmental performance Concept of new hybrid system development 1 Improved hybrid effect Engine shutdown in low-efficiency range Use of engine s high efficiency area Energy regeneration THS II (2.5-liter) Multi-stage THS II THS II Plug-in 36 2 Improved transmission efficiency 3 More compact dimensions and lighter weight Direct & Smooth 4 Evolution of control technology 5 Value creation by adding on to THS +Stage mechanism +EV driving : Prius TNGA technology expansion :Newly adopted technology Follow Prius New THS II with addition of new models and variations

37 New THS II for 2.5-liter engines 37 Fuel economy (JC08 test cycle fuel economy) (contribution by powertrain) Combines fuel economy with road performance 20% better Dynamic Force Engine (2.5-liter) & New THS II 10% shorter Current system (2AR-FXE + THS II) Acceleration time (contribution by powertrain) New THS II system for 2.5-liter engines New 2.5-liter setup Transaxle Lithium-ion battery Power control unit Nickle-metal hydride battery New THS II for new engine (2.5-liter) developed, based on new THS II for Prius

38 Multi-stage THS II Combines outstanding fuel economy and road performance 38 U.S. combined fuel economy (mpg) Multi-stage THS II Target Value Competitors vehicles 0-60mph nominal time (sec) Multi-stage THS II, which combines outstanding fuel economy and road performance, newly developed for rear-wheel-drive passenger vehicles

39 Multi-stage THS II 39 Direct & Smooth Rhythmical Gear Changes High-level Acceleration Performance Engine revolutions (rpm) Full 1st 1 速 2nd 2 速 3rd 速 4th4 速 5th 速 6th6 速 accelerator pedal use Heavy accelerator pedal use Light accelerator pedal アクセル use 100% 高開度低開度マニュアル 7th 速 88th 速 99th 速 10th 速 Acceleration (G) Acceleration Vehicle speed Current THS II (V6) Multi-stage THS II (V6) Vehicle speed (km/h) Vehicle speed (km/h) Time (sec) Rhythmical gear changes create comfortable acceleration feel

40 Multi-stage-THS II 40 THS Stage mechanism (Gear change section) Expanded system output (Expanded range of engine utilization) Maximum engine output already achieved in low vehicle speed range Improved transmission efficiency Maximum efficiency peaks increased to 4 for improved transmission efficiency across entire range Multi-stage THS II Electric power transmission efficiency (%) Ⅰ Ⅱ Ⅲ Ⅳ Current hybrid system Engine revolutions (rpm)/vehicle speed (km/h) Multi-stage shift device added to THS for major improvements in system output and transmission efficiency across entire range

41 New THSⅡ Plug-in 41 Direct & Smooth Dual Motor Drive system Generator (MG1) One-way clutch Motor (MG2) Output Use of Dual Motor Drive system makes powerful EV driving possible

42 New THSⅡ Plug-in 42 Direct & Smooth Expansion of range of driving in EV mode Achievement of strong EV acceleration High New THS II Plug-in Strong Stronger EV acceleration performance has been achieved EV driving output 1.8 times Current type 135km/h Low High Maximum EV driving vehicle speed Driving torque Weak Current motor (MG2) output Low Vehicle speed Generator (MG1) output Motor (MG2) output High Major improvements in EV maximum vehicle speed, output and drive power enables EV driving in nearly all environments

43 43 1. New Powertrains 2. New Engines 3. New Transmissions 4. New Hybrid Systems 5. Future Expansion

44 Lineup of new powertrain models to meet diverse needs 44 THS II (1.8-liter) THS II (2.5-liter) Multi-stage THS II Direct Shift-8AT Engines: 9 models, 17 variations Transmissions: 4 models, 10 variations HV systems: 6 models,10 variations Direct Shift-10AT Dynamic Force Engine 2.5-liter (Variations consist of front-wheel drive or rear-wheel drive, passenger or commercial vehicle, conventional or HV, differences in torque capacity, etc.) TNGA-based module development for achieving rapid introduction of 19 models and 37 variations by end of 2021

45 Future expansion % Share of sales 80% 60% 40% 20% Other TNGA 0% ' 年 '17 '17 年 '18 '18 年 '19 年 '20 '20 年 '21 '21年 In 2021, 60% or more of vehicles sold* will feature new powertrains, reducing CO 2 emissions by 15% or more (powertrain contribution compared to 2015) * In Japan, United States, Europe and China

46 For our customers smiles 46 For meeting diverse regional needs and for our customers smiles

47 Thank you for your kind attention 47

48 48

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