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TOYOTA TRANSFERS ALL NORTH AMERICAN REPLACEMENT PARTS LOGISTICS TO U.S. ARM, TARGETS 50 PERCENT DOMESTIC SOURCING BY 1995

 TORRANCE, Calif., Jan. 19 /PRNewswire/ -- Toyota Motor Sales U.S.A. Inc. (TMS) will invest more than $75 million to establish a new North American Parts Logistics Division (NAPLD), employing more than 1,000 associates and increasing Toyota's use of U.S.-sourced replacement parts to 50 percent of the total by 1995.
 NAPLD marks the first major decentralization of multinational responsibility by Toyota Motor Corp. (TMC) to one of its overseas distributors. NAPLD will report directly to TMS Executive Vice President Yale Gieszl and will have responsibility for replacement parts logistics in the United States, Canada and several other countries.
 The total investment will include about $67 million for a new parts warehouse and $8 million for new parts ordering and distribution systems. NAPLD's 1,000 employees will include about 400 new hires.
 The new organization will shorten supply lead time for North American distributors from 40 days to seven days by moving replacement parts inventories from Japan to the United States and reduce TMC and North American distributor inventory by $100 million.
 NAPLD is a major step in the globalization of Toyota's parts operations. It also demonstrates Toyota's commitment to greater localization in North America by shifting responsibility to TMS and by increasing the sourcing of parts from local U.S. companies.
 The new organization will have three main objectives:
 -- Take over all inventory management, warehousing and logistics functions for supplying replacement parts and accessories to North American distributors in the United States, Canada, Hawaii, Guam, Saipan and Puerto Rico;
 -- Support Toyota's expansion of local parts procurement and improve the supply performance from North American suppliers for replacement parts and accessories distributed worldwide for servicing Toyota export vehicles built in North American; and
 -- Strengthen Toyota's efficient U.S. parts distribution operations to support Toyota and Lexus dealers in maintaining customer satisfaction leadership.
 Robert E. Bennett, a 21-year Toyota veteran, has been appointed NAPLD vice president and general manager. He was formerly vice president of Vehicle Processors Inc., Toyota's new-car preparation and transportation company.
 Bennett has a reputation for implementing comprehensive solutions to strategic challenges facing the company, including Toyota's Supplier Development Outreach Program to accelerate the rate of growth in U.S. parts sourcing.
 "This unprecedented transfer of responsibility from TMC is a major vote of confidence in TMS," Bennett said.
 The new TMS division will have four departments: North American Parts Operations; U.S. Parts Operations; NAPLD Supply; and NAPLD Planning. All will be in place by the end of 1995 or early 1996.
 The new North American Parts Operations warehouse will be located in Ontario, Calif., and will be dedicated to providing replacement parts to North American distributors and export customers.
 Groundbreaking for the $67.5 million, 800,000-square-foot facility, located on 94 acres four miles east of Ontario Airport, will take place in the latter half of 1993 and it will be operational by early 1996.
 The facility, one of the largest Toyota parts distribution centers in the world, will maintain an inventory of 200,000 parts numbers worth more than $100 million.
 Bennett said the Ontario center will relieve Toyota's North American distributors of the need to expand their parts warehouses, which will save them capital and make their operations more efficient.
 He said it also will become a key player in the world parts export market.
 "As more vehicles are built exclusively in the U.S. for export to worldwide markets, such as the Camry station wagon at Toyota Motor Manufacturing in Georgetown, Ky., we will export more replacement parts," Bennett said.
 The U.S. Parts Operations Department will support Toyota's U.S. distributors by providing efficient and timely delivery of replacement parts to 11 existing parts distribution centers (PDCs) nationwide.
 The eight PDCs operated by Toyota Motor Distributors Inc., a subsidiary of TMS, will report to Bennett. The other three are owned by private distributors.
 "Toyota consistently enjoys high marks in consumer surveys such as the J.D. Power and Associates Customer Satisfaction Study, which are positively influenced by factors such as the customer's satisfaction with the Toyota and Lexus dealership," Bennett said. "The rapid turnaround of replacement parts at lower cost by NAPLD will serve to enhance the customer's dealership experience."
 NAPLD Supply Department will be dedicated to procurement, inventory control, supplier development, quality inspection and packaging.
 Finally, NAPLD Planning Department will be responsible for administration, developing future logistics operations and systems improvements and maintenance.
 The division is currently operating out of TMS' Torrance headquarters.
 -0- 1/19/93
 /CONTACT: Jim Olson, 310-618-4701, or Joe Tetherow, 310-618-4727, both of Toyota Motor Sales U.S.A./


CO: Toyota Motor Sales U.S.A. Inc. ST: California IN: AUT SU:

JL-KJ -- LA004 -- 6198 01/19/93 10:02 EST
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Publication:PR Newswire
Date:Jan 19, 1993
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