TOYOTA AFFILIATES TO MERGE IN INDONESIA

Toyota City―TOYOTA MOTOR CORPORATION announced plans today to merge its Indonesian production and marketing affiliates into a single new company. P.T. Toyota-Astra Motor will be established January 1, 1989 by merging Toyota's four current Indonesian affiliates: P.T. Toyota-Astra, P.T. Toyota Mobilindo, P.T. Toyota Engine Indonesia and P.T. Multi-Astra.

The move is being made in order to maintain better continuity and stability in Toyota's Indonesian operations. Toyota also hopes the new company will facilitate their ability to further contribute to the local economy.

The merger will see P.T. Toyota-Astra Motor, currently in charge of import and sales, take over body and parts production from P.T. Toyota Mobilindo, engine production from P.T. Toyota Engine Indonesia and vehicle assembly from P.T. Multi-Astra. These three companies will then be dissolved.

Toyota holds the top sales position in the Indonesian market, with sales in 1987 of 38,400 units, or 24% of the total market. Toyota hopes that the integration of all aspects of their operations in the Indonesian market, from production to sales, will allow them to become one of Indonesia's leading companies.