C (2:17)

Wow, strong stuff. Is that our story for today?

B (2:20)

Not just for today. Destination. There is so much happening in the electric vehicle or EV world at the moment that this will be the first in a two part installment on electric vehicles and the industries surrounding it. The current players, some possible new players, an interim technology, and who could get left behind.

C (2:43)

Sounds interesting. And what are we kicking off with?

B (2:47)

We will start with the off auto industry in Japan. How and when electric cars will be introduced and what will happen in the meantime.

C (2:55)

Let's do it. Let's get D2B down to business with Japanese cars now and in the future. Where are they and where are they going.

B (3:16)

To demonstrate how important cars are to Japan. One in ten jobs in this country are in the auto industry. Now that doesn't mean that 10% of the workforce are employed by one single big carmaker. But rather, the auto industry as a whole employs that many people.

C (3:38)

So companies that supply car batteries or some other small engine or trim parts are also included in that figure.

B (3:48)

That's right, Des. And as you can imagine, there are a lot more parts in a conventional vehicle than there are in an electric one.

C (3:57)

You know what, I never really thought of it that way, but sure, anyone that makes engine parts must be very concerned about the future.

B (4:07)

As I mentioned, Jatco, one of the world's biggest makers of transmissions, are worried about that very thing. That is not to say that EVs won't have any transmissions, but they will be a lot less complex than those used by cars today.

C (4:24)

So even if these factories were gearing up for electric vehicles, there would be fewer high end components for them to manufacture.

B (4:34)

That seems to be the concern for many of these smaller firms. Yes. However, on a larger scale, the main concern is that the big Japanese companies will miss the boat again, just as they did at the beginning of the digital era. Remember when everyone had a Sony Walkman and then a Sony Discman and finally, well, we all know the ipod really took over at that point.

C (4:59)

Yeah, true. No one expected a Californian computer company to eat the lunch of the mighty Sony.

B (5:08)

No one expected it. But it did happen. And for years, the Apple ipod was the digital music player of choice. Luckily for Sony, they managed to expand their gaming console business with the PlayStation.

C (5:23)

That is true, but other companies like Toshiba, Sharp and Sanyo are mere shadows of the companies they used to be.

B (5:33)

Well, the concern is that it will happen again with electric cars. Until recently, the Japanese have been mainly betting on the hydrogen fuel cell as the interim option along with the hybrid.

C (5:46)

Yeah, I remember when the hydrogen fuel cell was popular a few years ago, all of the big carmakers were showing cars powered by hydrogen fuel cells. Wasn't the problem that an entirely new infrastructure would have to be put in place to supply the vehicles with fuel?

B (6:07)

That was the problem. However, the Japanese government remains committed to the hydrogen fuel cell and they plan to have 320 hydrogen fueling stations in operation by 2025. Indeed, Hiroshige Seiko, Minister for Industry, defended his government's commitment to hydrogen when he commented that the trend towards electric vehicles is growing and sales are increasing. But we can't Suddenly jump to EVs.

C (6:38)

Hang on a minute. When I was back in the UK this summer, I was surprised that I saw so many more electric vehicles on the road. Yeah, I mean, still A tiny proportion, but a lot more than a year ago. Anyway, one of the most popular ones that I saw was that Nissan one.

B (6:59)

Oh, you mean the Nissan Leaf, I believe.

C (7:01)

Yeah, that's the one. One local council in Scotland has a whole fleet of them. Such is their commitment to EVs and the environment.

B (7:11)

Nissan is the one Japanese carmaker that has taken the EV seriously. And as you say, the Leaf, which was introduced in 2010, is a serious competitor to the Tesla Model 3 and the BMW i3. Although interestingly, the Leaf is not Nissan's first EV, isn't it? No, it isn't. That would be the Tama.

C (7:38)

The Tama?

B (7:40)

Yep. With a top speed of, get this, 30 kilometers per hour and a range of close to 60 kilometers.

C (7:48)

Yeah, those are not exactly great statistics, Skip.

B (7:52)

True, but they were not so bad when it was introduced in 1948. Really?

C (7:58)

They've had an EV for as long as that Anyway. What about Toyota? They seem to be a class leader with the Prius hybrid.

B (8:08)

Well, they are still a leader in the hybrid market, but the problem is that they have not taken the all electric market very seriously until now. Neither have Honda, to be honest.

C (8:21)

However.

B (8:22)

However, at this year's Tokyo Motor show, both Honda and Toyota were showing a new range of all electric vehicles. And Toyota announced a battery development partnership with Panasonic, the same company who supplied batteries to Tesla.

C (8:38)

I see. It looks like the EV market is really hotting up.

B (8:42)

It is becoming interesting. And also Panasonic will be supplying sensors and in vehicle monitors to toyot use in their EVs and as well as more conventional vehicles.

C (8:56)

Interesting. So Panasonic, like Sony, has moved away from traditional electronics into more niche markets like automotive.

B (9:07)

As Akio Toyoda, Toyota's chief executive, said earlier this year, in the future, mobility won't belong only to carmakers.

C (9:16)

That is most certainly true. And we will be talking in future episodes about one very surprising entrant into the EV market.

B (9:26)

I am looking forward to hearing all about it, but now it is time for you and I to get D2V down to vocabulary.

A (9:43)

Down to Business English audio scripts are a great learning tool. Be sure to visit the D2B website and download your free audio script of today's podcast. Downtobusinessenglish.com that's www.downtobusinessenglish.com.

C (10:06)

Our first word today is the noun and adjective interim, which means a period in between two other events or periods. In the story, Skip uses the adjective form twice when he discusses the hydrogen fuel cell as an interim option. Between gasoline engines and fully electric vehicles.

B (10:31)

Another good example of interim is as a country's economy develops, its main mode of transportation evolves from bicycles to motor scooters and eventually to cars. We could say that scooters and motorcycles are the interim option before cars are

C (10:52)

widespread and ironically, when countries become more developed, they return to bicycles and motorcycles for leisure.

B (11:03)

Yes, that is an irony. Next I have the two part verb to gear up, which means to equip or prepare for something. In the story, DES argues that even if factories geared up or prepared to make components for electric cars, there are just fewer components that are needed in an EV compared to a gasoline fueled car.

C (11:28)

You can use this two part verb to talk about your own preparations for some activity. I used to ride my motorcycle to work all through the winter, so I needed to gear up against the cold every day.

B (11:43)

Maybe in the UK or even here in Japan, but you hardly need to gear up where you are now in Abu Dhabi.

C (11:50)

Yeah, true. I will follow that with another multi part verb to eat someone's lunch, which means to gain market share from another competitor by aggressively pushing a new service or product. In the story I commented that at the time, no one expected Apple to be able to eat Sony's lunch in the personal stereo market.

B (12:20)

Budget airlines are another good example. In many markets they have really eaten the full price airlines lunch and are in many cases making more profits. And that example is a good segue into my next item, the multi part

C (12:36)

verb to miss the boat from from aeroplanes to boats.

B (12:41)

Yes, I'm all about transportation today.

C (12:43)

Yeah, you certainly are.

B (12:48)

Okay. To miss the boat means to be too slow in taking advantage of a fast changing situation. In the story, I commented that if Japanese companies don't get on board with electric vehicles, there is a worry that they will miss the boat and get left behind by other companies.

C (13:08)

A friend of mine was talking about investing in cannabis companies more than a year ago now. I didn't really listen and he made good profit and I I missed the boat. Let me finish off today with the adjective niche, which means something that is only applicable to a small, specialized group of people. In the story, I commented that Panasonic has moved from more general electronics to niche applications like screens and sensors for the auto industry.

B (13:47)

Department stores in Japan that target a niche market have tended to outperform those that are more general over the last few years. Tokyo Hands is a good example. It targets young, active men, which is a fairly narrow niche, but also a very lucrative one.

A (14:10)

Would you like to support down to business English Be sure to visit the D2B page in iTunes and subscribe to this show. While you are there, why don't you leave a rating and a comment? This will help D2B reach more people wanting to improve their business English skills. Down to Business English Business News to improve your Business English.

B (14:43)

Des, it is so good to be back speaking with you today.

C (14:46)

Good to be back with you, Skip. I'm looking forward to the rest of the season between now and mid December.

B (14:54)

Me too. August was not a productive month for releasing episodes, but now that you and I are back from our summer vacations and Samantha is raring to go, we should be able to get back on a more regular release schedule.

C (15:09)

And I'm sure everyone will be happy to hear that.

B (15:12)

So let's get out of here so I can start editing this episode and get it posted asap.

C (15:18)

Sounds good.

B (15:19)

Thanks for listening everyone. See you next time.

C (15:22)

Bye Bye.

A (15:28)

Have a comment or question about today's show? Don't be shy. Visit the D2B website or the Facebook page and post any comments or questions there. Skip, Des, or Samantha will be sure to leave a reply. Want to get even more down to Business English? Sign up for the D2B Newsletter and receive updates on some of the stories covered on down to business English. That's www.downtobusinessenglish.com down to business English Business News to improve your Business English.