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 SAN FRANCISCO, Nov. 19 /PRNewswire/ -- General Motors Corporation (NYSE: GM) and Toyota Motor Corporation (NASDAQ: TOYOY) signed an unprecedented supply and sales agreement here today under which GM will build right-hand drive Chevrolet Cavaliers in the U.S. Toyota will purchase these models from GM and sell them in Japan.
 General Motors CEO and President John F. Smith, Jr. and Toyota President Tatsuro Toyoda presided at the official signing ceremony.
 The agreement calls for right-hand drive Chevrolet Cavaliers that will be sold through a selected channel of Toyota's dealer network in Japan under the Toyota nameplate. The vehicles will be offered for sale in Japan in early 1996. Volumes are expected to average 20,000 units per year. The success of this project will depend upon GM manufacturing the vehicle to meet the high quality standards of the Japanese customer and Toyota putting forth its best efforts to sell the car.
 Mr. Smith said of the agreement, "The positive working relationship that developed between GM and Toyota at New United Motor Manufacturing Inc. (NUMMI) and the joint venture in Australia has made this possible. Personally, Mr. Toyoda and I have worked together on these projects which has given us a respect for each other and our organizations.
 "Clearly, this agreement is evidence that the U.S. has closed the competitive gap with Japan and is now in a position to build these global vehicles that can compete any place in the world," he continued.
 Mr. Toyoda said, "We are very pleased to have another opportunity to do business with GM. We appreciate the deep understanding and positive leadership demonstrated by Mr. Smith in promoting the project.
 "Such an endeavor, to maximize sales, can only be achieved by mutual cooperation. I believe this project will bring about many good effects as a new exemplar of industrial cooperation between Japan and the U.S," Mr. Toyoda concluded.
 GM regards this as another example of how it is growing its business and expanding its market internationally, and is the first significant right-hand drive program for the company at a U.S. plant.
 Toyota believes that this cooperative effort between the two companies will not only enhance Toyota's product line-up in the Japanese market by increasing the variety of flavors offered to appeal to the Japanese customers' tastes, but will also contribute to the internationalization of the Japanese automobile market through the expansion of trade between the two countries.
 A manufacturing site will be selected at a later date but will be limited to the U.S. facilities producing Chevrolet Cavaliers. The sales channel in Japan will be selected by Toyota at a later time.
 Yanase will continue as the primary distributor of GM-badged North American and Opel vehicles in Japan.
 -0- 11/19/93
 /NEWS DIRECTORS NOTE: A satellite feed of the signing ceremony will be moved between 3:35 and 4 p.m. EST or 12:35 and 1 p.m. PST. The program will be repeated as time permits. On the Ku-band the coordinates are Galaxy 7, 14 upper, downlink frequency 12005 audio 6.2 and 6.8, and on C-band the coordinates are Galaxy 7, 13 horizontal, downlink frequency 3960 audio 6.2 and

 EDITORS NOTE: A still photo will move on PR Newswire's photo wire between 3 and 4 p.m. EST. Associated Press in San Francisco will be delivered a photo between 5 and 6 p.m. EST.
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 This photo is also transmitted on the INS PhotoLink Network./
 /CONTACT: Tim Andree of Toyota Motor Corporate Services, 212-644-4872; or Bill O'Neill of GM NAO Communications, 415-398-5478, John Mueller of GM International Communications, 415-398-5478, or Kari Hulsey of GM NAO Communications, 313-986-6126/

CO: General Motors Corporation; Toyota Motor Corporation ST: California, Michigan IN: AUT SU:

ML -- DE010 -- 6551 11/19/93 12:59 EST
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Publication:PR Newswire
Date:Nov 19, 1993

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