TMC, TICO to Build Diesel Engine Plant in Poland

Tokyo―TOYOTA MOTOR CORPORATION (TMC) and TOYOTA INDUSTRIES CORPORATION (TICO)1, in view of the rising demand for diesel-powered vehicles in Europe, announced today plans to build a diesel engine plant in southwest Poland to supply 2.0-liter-class diesel power units to Toyota vehicles made in the U.K. and Turkey. Toyota Motor Industries Poland Sp.zo.o. (TMIP) will be formally established by the end of October, with production slated to start at the beginning of 2005.

TMC Managing Director Tokuichi Uranishi, TME2 President & CEO Shuhei Toyoda and TICO Managing Director Norio Sato revealed the plans for the new plant, which will be located about 25km southeast of Poland's fourth-largest city of Wroclaw, during a press conference today at Poland's Economic Ministry in Warsaw. Representing the Polish government at the gathering were Polish Minister of Economy Jacek Piechota and Polish Undersecretary of Economic Ministry Ewa Freyberg, among other officials.

TMIP will have an annual production capacity of 120,000 units. Its 2.0-liter -class diesel engines will be destined for the Corolla produced at Toyota Motor Manufacturing (UK) Ltd. (TMUK) and Toyota Motor Manufacturing Turkey Inc. (TMMT) and the Avensis built at TMUK. It will be set up with an investment of 170 million euros (approximately 20 billion yen; 1 euro = 117 yen) and is expected to have a workforce of around 350 persons.

This new effort represents the latest addition to Toyota's manufacturing activities in Poland, following the start last April of manual transmission production at Toyota Motor Manufacturing Poland Sp.zo.o. (TMMP) in Walbrzych, Dolnoslaskie Province, for Toyota vehicles made in Europe. TMMP will also start producing gasoline engines and manual transmissions from the end of 2004 for small passenger cars to be built at Toyota Peugeot Citroën Automobile Czech (TPCA)―a joint venture in the Czech Republic by TMC and PSA Peugeot Citroën due to go on-line in 2005.