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TOYOTA ANNOUNCES MEASURES FOR PROMOTING BUSINESS WITH U.S. SUPPLIERS AND AUTOMAKERS

 TOYOTA ANNOUNCES MEASURES FOR PROMOTING BUSINESS
 WITH U.S. SUPPLIERS AND AUTOMAKERS
 TOYOTA CITY, Japan, Jan. 8 /PRNewswire/ -- Toyota Motor Corporation today announced additional measures in its steadily expanding framework for purchasing automotive parts and materials from American suppliers. The company also announced a package of measures for assisting U.S. automakers in the Japanese market.
 U.S. suppliers account for a fast-growing share of Toyota's global purchasing, and Toyota has taken extensive and systematic measures in recent years to broaden its business ties with American manufacturers of automotive parts and materials. Those measures have included dispatching engineers to suppliers' plants to assist suppliers in raising quality and productivity, as well as convening quality seminars and conducting other related activities.
 Today, Toyota announced that it will upgrade and strengthen its U.S. organization for extending technical support to American manufacturers of auto parts by opening a "supplier support center" in the United States in mid-1992. Personnel at the new supplier support center will work with parts makers to help them improve and streamline their production processes. The center will be the newest facility in Toyota's large and growing local interface with suppliers in the United States, which includes technical centers in Michigan and California and a design subsidiary in California.
 Toyota is also making itself more accessible to U.S. suppliers by promoting so-called design-in activities, which provide for joint work with parts makers, starting in the early stages of product development. Toyota presently conducts substantive volumes of business with 303 suppliers in the United States, and 119 of those suppliers have developed parts for Toyota vehicles through design-in projects. Some 187 companies now are working with Toyota in design-in projects on additional components.
 The dollar volume of Toyota's U.S. purchasing has surged in step with the company's broadening relationships with American suppliers. Toyota spent $2.6 billion on American-made parts and materials in the fiscal year beginning April 1990, and it has announced that its purchasing of those items will reach $4.6 billion in the year beginning April 1994. That figure comprises $3.6 billion in local purchasing by Toyota operations in the United States and $1 billion in imports by the company's operations in Japan. The huge volume of local purchasing at Toyota's U.S. plants is evident in their high levels of local content, which compare favorably with the levels at the Big Three U.S. automakers.
 Toyota's purchasing of auto parts and materials in the United States is part of a systematic, global-purchasing framework. That framework will include total imports of some 400 billion yen (about $2.9 billion) by Toyota operations in Japan in the year beginning April 1994, as well as local purchasing by Toyota operations around the world. Imports from the United States will account for $1.5 billion of that total.
 Besides importing automotive parts and materials, Toyota will ship cars to Japan from its Kentucky plant, and it also will market Volkswagen and Audi vehicles in Japan. In addition, the company announced today that it is prepared to negotiate with General Motors about the possibility of retailing GM vehicles in Japan, subject to the approval of GM's Japanese franchisee. Such an arrangement might reasonably be expected to yield sale of 5,000 vehicles a year. GM and Toyota are partners in a successful joint venture in California that produces Corollas and pickup trucks for Toyota and Geo Prizms for GM.
 The prospective marketing tie-up with GM reflects Toyota's commitment to ensuring genuine access for U.S. automakers to the Japanese market. Toyota reported that it is re-emphasizing to its dealerships in Japan -- nearly all of which are independent businesses -- that they are free to handle foreign vehicles. The company also indicated a readiness to make its corporate showroom, Toyota Auto Salon AMLUX Tokyo, available to foreign automakers for occasional promotional fairs and other events.
 Toyota's continuing efforts to expand business with American suppliers and automakers evoke an acute awareness of the severity of conditions in the U.S. auto industry. Management at Toyota recognizes that a real turnaround for the U.S. industry will hinge on efforts by the American automakers to reassert an international competitiveness. They are determined, however, for Toyota to do everything possible to contribute to maintaining a strong and vigorous auto industry in the United States.
 Today's announcement included suggestions that Toyota's purchasing of parts and materials from U.S. suppliers could actually exceed the $4.6 billion figure that the company has projected for the year beginning April 1994. Toyota management believes that the total could be as high as $5.28 billion -- $3.82 billion in local purchasing and $1.46 billion in imports -- depending on market trends and on the progress of U.S. suppliers in achieving further gains in quality and productivity.
 -0- 1/8/92
 /CONTACT: K. Kuroki of Toyota, 011-81-33-817-9931/ CO: Toyota Motor Corporation ST: IN: AUT SU:


JT-CK -- NY129 -- 8001 01/08/92 18:06 EST
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Date:Jan 8, 1992
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