Toyota and China FAW Establish Joint Venture to Build Engines in Changchun, China

Tokyo ― TOYOTA MOTOR CORPORATION (TMC) announced today that TMC and CHINA FAW GROUP CORPORATION (FAW) established on March 25 a joint venture to manufacture engines in Changchun City , Jilin Province, China . FAW Toyota Changchun Engine Co., Ltd. (FTCE) will have an annual production capacity of 130,000 engines and will commence production of 3.0-liter V6 gasoline engines at the beginning of 2005.

After signing a joint agreement in August 2002, TMC and FAW have been steadily moving forward in their collaborative efforts regarding automotive operations in China . The two companies signed an agreement in April 2003 regarding the joint production of four vehicle models and technology transfer. So far, the Land Cruiser and Land Cruiser Prado SUVs and Corolla passenger car have already begun production.

FTCE will produce engines for the Crown luxury sedan, which is to be made at Tianjin FAW Toyota Motor Co., Ltd. (TFTM).

FTCE is capitalized at US$84,540,000 (approx. 10 billion yen), with both TMC and FAW each providing 50% of the equity. Jin Yi (Vice President, FAW) is scheduled to assume the position of chairman, and Masami Yamada ( Project General Manager , China Div., TMC) is to be FTCE's president.