TOYOTA PURCHASING OF U.S. AUTO PARTS, MATERIALS, AND EQUIPMENT TO REACH $5 BILLION IN 1994
TOYOTA PURCHASING OF U.S. AUTO PARTS, MATERIALS, AND EQUIPMENT
TO REACH $5 BILLION IN 1994
TOYOTA CITY, Japan, Nov. 10 /PRNewswire/ -- Toyota Motor Corporation announced today that its purchasing in the United States will grow to $5 billion in the Japanese fiscal year beginning April 1, 1994. This represents a more than fourfold increase over the $1.12 billion Toyota spent on purchases of U.S. parts, materials, and equipment in fiscal 1988, the year it opened its first wholly owned automobile plant in the United States.
The projected expansion in Toyota's U.S. purchasing includes further growth in business with local suppliers at the company's North American operations and increased imports of parts and materials by Toyota plants in Japan. Figures released by Toyota today call for local purchasing of parts, materials, and equipment in the United States to reach $3.6 billion annually in fiscal 1994, and for yearly imports from U.S. suppliers to reach $1 billion. In addition, the company is forecasting that its 1994 purchases of machine tools and other ancillary items from American suppliers will total $400 million.
Toyota's local purchasing in the United States has grown steadily in step with the company's expanded manufacturing operations in that country. Toyota's U.S. sales subsidiary is also purchasing a growing volume of parts and supplies from American suppliers.
Meanwhile, Toyota's import business with American suppliers has grown as the U.S. parts makers have promoted their products more aggressively and as Toyota has implemented systematic programs to facilitate broadened ties with overseas suppliers. Representatives of some 75 U.S. and Canadian parts suppliers were in Japan last week for Toyota's Second Annual North American Import Suppliers Meeting.
A total of 307 American companies now supply parts of Toyota in substantive volumes, up from 129 U.S. suppliers as recently as 1989. One of the most productive ways for U.S. suppliers to win business with Toyota has been through so-called design-in projects. Those projects consist of joint work by suppliers and Toyota on new components, starting in the early stages of product development. Some 119 suppliers have developed components for Toyota vehicles through design-in projects, and 187 suppliers now are working with Toyota in similar projects.
A special focus in Toyota's fast-growing business with U.S. suppliers has been semiconductors. Toyota's annual purchases from foreign manufactures of semiconductor devices have more than doubled in the past year, to an estimated $33 million in fiscal 1991. The company expects that purchases from non-Japanese manufacturers will reach $86 million in 1993, accounting for roughly 20 percent of its total needs.
Toyota's technical interface with American suppliers is broadening as the company continues to upgrade its capabilities for conducting development and design locally in the United States. The automaker completed major expansions this spring at its technical complexes in Torrance, Calif., where it opened a new vehicle-testing facility, and in Ann Arbor, Mich., where it opened a new parts evaluation facility. Toyota's U.S. design subsidiary, Calty Design Research, Inc., also completed a major expansion this spring, and the company is building a huge proving ground on 12,000 acres in Arizona.
/CONTACT: Jim Wiseman, corporate manager, external affairs, of Toyota Motor Manufacturing, 502-868-2000/
(TOYOY) CO: Toyota Motor Corporation ST: IN: AUT SU: OS -- NYSU002 -- 2835 11/10/91 23:00 EST