Episode #1413: Today we’re talking about Toyota turning Akio Toyoda into an AI management coach, why fewer Americans are leasing vehicles, and Rivian’s R2-fueled quarter as revenue improves, losses narrow, and cash burn remains firmly in the passenger seat.

Toyota is taking “digital twin” technology out of the factory and into the executive suite. The company has created an AI version of Chairman Akio Toyoda to teach managers his philosophy, preserve decades of institutional knowledge, and explore how humans and AI might work side by side.

• Developed by Woven by Toyota, Akio Toyoda AI is a web-based training tool designed to reflect the chairman’s voice, reasoning patterns, priorities, and management philosophy.

• Toyota says the avatar is not meant to replace Toyoda or make decisions. Instead, it helps employees learn how he approaches problems, difficult conversations, talent development, and organizational leadership.

• Around 100 regular users are already testing the system, while developers continue refining it with direct input from the real Akio Toyoda.

• Stefan Thomke, a professor at the Harvard Business School said, "Digital twins have been used in engineering and production systems for years. Extending the concept to people isn’t surprising but also raises interesting issues. How will people use it? How do they interact with the model?”

• The AI still has limitations. During the Automotive News interview, it misstated basic facts about Toyota’s U.S. production and sales, requiring human spokespeople to correct the record.

Americans still like leasing, but the deals aren’t what they used to be. Higher rates, fewer incentives, and tighter inventories have pushed payments up, steering shoppers toward longer loans and reducing both dealer loyalty and used-car supply.

• Leasing made up about 30% of new-vehicle deals before the pandemic, fell to 17%, and recovered to just 23% in the first half of 2026.

• Automakers have reduced subsidized lease offers, while higher interest rates have made remaining deals more expensive.

• Average lease payments are about $650 versus $800 to finance, but many returning customers are seeing increases of $100 to $200 per month.

• Fewer affordable leases are pushing shoppers into longer terms, with 23% of second-quarter purchases using 84-month loans.

• Dealers are also losing repeat customers and off-lease inventory. GM dealer David Ferraez said, “The customer still has a desire to lease. The big challenge is getting the customer to accept the much higher payment.”

Rivian’s second quarter was all about the R2 launch, stronger revenue, and narrowing losses; though the company is still burning serious cash. The more affordable SUV is now reaching customers as Rivian bets on higher volume, software revenue, autonomy, and new funding to drive its next phase.

• Rivian produced 12,613 vehicles and delivered 12,194, while revenue rose 27% year over year to $1.66 billion.

• Consolidated gross profit reached $179 million, improving by $385 million. Automotive losses narrowed sharply, though the R2 ramp added about $100 million in costs.

• Rivian began external R2 deliveries June 9 and hosted a record 57,000 demo drives. Its Georgia plant could eventually add 300,000 units of annual capacity.

• The company still posted an $837 million net loss and used $849 million in free cash flow, but ended the quarter with $5.3 billion in cash and investments.

• CEO RJ Scaringe said, “I believe R2 will be a game changer for our customers and a driver of Rivian’s long-term growth and profitability.”