Toyota has announced a major modernization plan for its manufacturing facilities, aiming to deploy nearly 400,000 automated systems by 2028. This initiative is designed to address the challenges of aging production lines and a growing labor shortage. The company plans to invest 1,000 billion yen annually (approximately $6.4 billion) to implement this transformation. The 400,000 units will be divided between Toyota’s own clean factories—those designed for more efficient and sustainable production—and suppliers and partner equipment manufacturers, who will receive 150,000 and 250,000 units, respectively. The project includes both upgrading existing machinery and introducing new automated systems. A key component of this effort is the development of a new robot called ELEY. ELEY uses a wheeled chassis and a two-fingered gripper, which allows it to move more efficiently and safely than traditional walking robots. This design avoids the risk of tipping over and reduces energy consumption. ELEY is programmed using a technique called physical AI, where it learns by observing human actions. Artisans wear sensor-equipped gloves that record movements, video footage, and the pressure applied during tasks. These data are used to train large behavioral models developed by the Toyota Research Institute (TRI). In a recent test, ELEY successfully folded a T-shirt after 1,500 attempts over two weeks, though more work is needed to improve its precision and reliability. Toyota also aims to digitize the skills of 18,000 master artisans, known as Takumi, who play a critical role in achieving high finishing standards in manufacturing. These artisans have deep, hands-on expertise that is often passed down through experience. By capturing their knowledge digitally, Toyota hopes to make these skills more widely accessible and replicable across its global network of factories. This effort is part of a broader vision to integrate human expertise with automation, ensuring that traditional craftsmanship is not lost but enhanced through technology. Hiroki Nakajima, Executive Vice President of Toyota, emphasizes a collaborative approach where robots take over repetitive or physically demanding tasks, allowing human workers to focus on quality control, maintenance, and innovation. Toyota envisions a future where robots, trained by master artisans, assist in training new human workers and support continuous improvement in manufacturing processes. This strategy aims to create a more efficient, sustainable, and adaptable production system that combines the strengths of human skill and machine precision.