Toyota to Establish New Aftermarket Parts and Accessories Company

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced today that it will establish a new company called TACTI Corporation jointly with Nippondenso Co., Ltd. and Aisin Seiki Co., Ltd. for procuring and marketing aftermarket auto parts and accessories, as well as for participating in the car shop business.

The aftermarket auto parts and accessories market in Japan is expected to grow rapidly due to the increasing variety of consumer needs and the easing of regulations, such as those concerning car maintenance and inspection. Combined with Toyota's existing parts and service activities, TACTI will enable Toyota to respond quickly and flexibly to this expanding market, procuring aftermarket parts and accessories from both Japan and overseas. This will contribute to the expansion of imports of auto parts and accessories, as articulated in the New Global Business Plan announced by TMC in June 1995.

Outline of Operations

1. Procurement and Marketing of Aftermarket Auto Parts and Accessories

   TACTI will procure a wide variety of aftermarket parts and accessories, including those produced overseas, and will market them separately from genuine Toyota parts across the country. Most of these aftermarket parts and accessories will be marketed under a new brand name. The products TACTI will deal with include such goods as maintenance parts (including V belts and brake pads), chemicals, oil and fluids, general accessories, tires, and batteries. Together with genuine Toyota parts, the availability of new brands of quality aftermarket parts and accessories at attractive prices will significantly strengthen the parts lineup for after-sales service use.

   Marketing will be conducted through the sales outlets of Toyota parts distributors, Toyota dealers, and car shop outlets developed by the new company.

2. Car Shop Operations

   The new company will recruit franchisees who will sell and install aftermarket parts and accessories, as well as provide simple maintenance, to owners of all makes of vehicles, not only Toyota automobiles. In order to differentiate themselves from existing car shops , they will contain numerous service bays to make possible quicker service and will make full use of Toyota's technical expertise, establishing them as dependable sales and service centers.

   Along with providing franchisees with aftermarket parts and accessories, a sales and service system, and sales promotion support, TACTI will directly own and operate two car shops in Aichi and Hyogo Prefectures that will serve as models for franchisees.

   Toyota plans to franchise 50 car shops nationwide during the first round of recruitment, scheduled to begin this spring.

Outline of New Company

1. Company Name

   TACTI Corporation

2. Establishment

   April 1996

3. Start of Operations

   July 1996

4. Head Office

   Nagoya, Aichi Prefecture

5. Capital (planned)

   ¥450 million

6. Equity Ratios (planned)

   Toyota Motor Corporation

   80%

   Nippondenso Co., Ltd.

   10%

   Aisin Seiki Co., Ltd.

   10%

7. Executives (planned)

   4 Directors, 2 Auditors

8. First Year Employees

   Head Office about 60 persons (Extensive recruitment of employees for the directly operated car shops will take place in the future.)

9. Sales Target

   ¥55 billion in fifth year