Toyota Greets The First Avalon

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced that Toyota executives, including TMC Honorary Chairman Eiji Toyoda, gathered at Toyota Motor Manufacturing, U.S.A., Inc. (TMM) in Georgetown, Kentucky today to celebrate the production of the first Avalon. The car is Toyota's new large sedan and will be built exclusively at TMM. Meanwhile, in Japan, the company announced details of the automaker's North American production expansion over the next few years.

TMC President Tatsuro Toyoda said that North American-built vehicles will comprise over 60% of Toyota's U.S. sales in 1996 versus 46% in 1993. He added that, "Toyota's finished-vehicle production in North America is expected to reach 790,000 units in 1996, an increase of almost 50% compared with the production of 533,000 units achieved in 1993."

Toyota's sourcing of vehicles for the U.S. market only from its North American plants began in 1992 with the Camry Wagon, was followed by the Camry Coupe, and now includes the new Avalon, said Toyota. And from 1995, all units of the compact pickup truck to be sold in the North American market will be produced at New United Motor Manufacturing, Inc. (NUMMI), the Toyota-GM joint venture in the United States.

Because of this increase in local production in North America, exports from Japan to the U.S. will drop nearly 28% by 1996 to approximately 400,000 units versus 554,000 in 1993.

To further increase local content of its vehicles in North America, Toyota is also promoting projects to further increase engine production at TMM and Toyota Motor Manufacturing Canada Inc. (TMMC). The target for Toyota's engine production plan in North America is over 440,000 units in 1996, compared to 207,000 units in 1993.

The company also reiterated that its total procurement of U.S. parts and materials, including imports to Japan, for FY1996 is expected to reach US$6.45 billion. Toyota bought US$4.65 billion worth of U.S. parts and materials in FY1993.

Shinji Sakai, president and CEO of Toyota Motor Sales U.S.A. Inc. (TMS), which exports U.S.-built vehicles, noted that exports also will increase. "By 1996, we'll be exporting about 80,000 U.S.-built cars to Japan, Taiwan, and other markets," he said. Sakai added that―in addition to Camry, Corolla, and a Toyota-badged version of the Chevrolet Cavalier―Avalon will also be exported. "Markets and timing for the Avalon export program will be announced later," he said.