 You are looking at Toyota's new billion-dollar headquarters in Texas, and joining me now. From the headquarters is Jim Lent, CEO of Toyota North America. So Jim, it's great to see you. This is part of a broader $10 billion investment Toyota is making in the U.S. over the next five years. And you're also revamping some of your existing manufacturing facilities, is that right? Yes, we are. So Kentucky, as an example, we're investing another $1.3 billion to prepare that to build our new TNGA architecture for the vehicles. So it's the first really major investment we've made in many, many years in that plant, and that will continue throughout all of our plants here in North America. And how much of this decision was triggered by President Trump, who has taken aim at auto companies since the election, encouraging them to keep production here in the U.S.? Well, the fact of the matter is we've got to make sure that our plants here are competitive with plants that Toyota has around the world, and frankly, with all of our competition around the world. So it's really driven by the need in this very competitive business to make sure that your plants are safe, to make sure that they build the best quality, and you can do that at the lowest cost. So it's really more about competitive piece. You know, obviously we want to continue to build in the U.S. We built 2.1 million in North America last year. About 70 percent of what we sell here is made here in North America. But still, as the CEO of a major auto company, you don't want President Trump tweeting about you in a negative way as he has done to some of your rivals earlier this year. Well, sure, you would rather not have that. I mean, the good news is the president is aware of the investment we're making here, and the White House sent a very, very nice letter thanking us for the investment here in the U.S. and for keeping jobs here in the U.S. You know, when you look at this facility, it's 2 million square feet. About 5 million man-hours went into this. So you know, forget the Toyota employment piece for a minute, and look at the employment that was created as a result of building this campus where there were, in excess of 2,000 workers at any one point in time building this. It's been a tremendous economic boom to the local community here. All right, I want to move on to the broader auto sector. What do you make of Volvo's decision to offer an electric model on its car starting in 2019? Well, I think it's a good move on their part. If you look at Volvo's numbers, I think they sell about 100,000 here in the U.S. We sell about 2.5 million here in the U.S. So when you have a much smaller portfolio of product, it allows you to concentrate in a much smaller niche of the marketplace. You know, today, all alternative vehicles, and I would throw fuel cells, EVs, and hybrids in there, they're 3.2 to 3.5 percent of the industry. So if your sales of 100,000, if you can concentrate there, that's great. Our company being full line manufacturer, that's a little bit more difficult to do. You know, globally, we've sold over 10 million hybrids in the U.S., 7 out of 10 hybrids on the road are still either Toyota or Lexus nameplate vehicles. So we're still the king of hybrids and alternative fuel vehicles here in the U.S., but it would not be possible for us today to move 100 percent of our production in that direction. But is that a goal for you, say, in the next decade? I don't know if the next decade makes sense. You know, I think if you look at the future of powertrains, regular gas powertrains have been improving tremendously over the next few years. They will continue to improve as we go forward. We believe that hybrids are still going to be the backbone of our overall powertrain strategy. Plug-in hybrids, extended ranges, will get larger and larger. We've already introduced fuel cells into the market, and we think that long-term future is going to be fuel cells. EVs will be part of that, but we have a little bit of a different strategy than others. We think that small-range EVs are probably the better use of an EV, and longer range, longer distance, we think fuel cells that can refuel in three to five minutes, very much like a gasoline-powered car, are in fact going to be the future. So are you worried about the Tesla Model 3, which is, of course, a lower-cost electric vehicle? I think it's going to be great, but today, less than half of 1% of the industry are pure EVs. I think Tesla has a great product. They have a great battery. We actually use that battery in our RAV4 EVs, so we understand it very, very well. But if you look at the lower end of the EV market, that's the really difficult business part of the market to be in. That's the part of the market that has extremely high incentives and have really struggled in terms of sales volume. So we'll see what happens. I'm sure it's going to be a great product. They have a lot of deposits and a lot of interest in customers. All right. Now, Toyota had a 2% increase in sales year-over-year as of June, while your rivals GM Ford, Fiat Chrysler, also declined. I mean, do you think we're at peak auto here in the U.S. after an incredible couple of years of sales? Yeah, I think they probably have. I mean, if you look at, since the Lehman shock, it's been seven consecutive years of increase and on average about a million unit increase per year. That wasn't sustainable forever. The fact is, I think the market is peak, but I think the market's plateaued. I think around a 17 million run rate is where we're going to see this market for the next few years at least. That's a very healthy position for the industry to be in. Jim, Toyota also had double digit growth in China last month. What does that business look like in a year from now? It's interesting to see. So China's market is starting to shift very similar to the U.S. market. Big surge in demand for SUVs. So like trucks, but not necessarily on the pickup truck side. So I think you're going to continue to see movement towards entry-level, small, medium-sized SUVs. There will also be a bigger push, I think, with EVs in China, as you're going to see a bigger push with EVs in Europe as well. All right. Jim Lenn, CEO of Toyota North America, thank you so much for joining us. Thank you.