Toyota's Alabama Engine Plant to Boost Production Capacity

Tokyo - TOYOTA MOTOR CORPORATION announced today that Toyota Motor Manufacturing, Alabama, Inc. (TMMAL) plans to boost its annual V8 engine production capacity to 270,000 units and to invest approx. US$250 million (27 billion yen) in a new production line, as well as create 300 additional jobs, bringing TMMAL's total annual engine output to 400,000 units in 2006 (including V6 engines from mid-2005). With this increase, Toyota's North American annual engine production capacity will come to 1.44 million units.

The V8 engines produced by TMMAL will be used in the Tundra pickup truck to be produced by Toyota Motor Manufacturing, Texas, Inc. starting in 2006 and, from 2006, in the Sequoia SUV now being produced by Toyota Motor Manufacturing, Indiana, Inc. (TMMI). At present, TMMAL produces V8 engines for the Tundra produced by TMMI and will continue to do so.

TMMAL was established in 2001 as the first Toyota plant outside of Japan to produce V8 engines. It started to produce V8 engines for the TMMI-made Tundra in 2003 and is to start production of V6 engines for the Tundra and the Tacoma produced by New United Motor Manufacturing, Inc. and Toyota Motor Manufacturing de Baja California from mid-2005. TMMAL employees, currently numbering around 350, are expected to increase to around 500 in mid-2005. The additional 300 jobs announced today, will bring the total to around 800 in 2006.