CONSTRUCTION BEGINS AT TOYOTA'S $300 MILLION
KENTUCKY POWER TRAIN PLANT

Toyota City―Toyota Motor Manufacturing, U.S.A., Inc. (TMM), a U.S. subsidiary of TOYOTA MOTOR CORPORATION (TMC), announced today that it has broken ground for a new $300 million power train plant at the company's automobile manufacturing complex in Georgetown, Kentucky. When completed, this latest addition will bring Toyota's total investment in the Kentucky operation to more than $1.1 billion.

At a groundbreaking ceremony held at the site this morning, TMC president, Shoichiro Toyoda said that the expansion "demonstrates that Toyota is continuing to work to honor its commitments and deepen its contributions to Georgetown, to Kentucky, and to America." He went on to say that the decision to add a power train plant was "a strong vote of confidence in TMM."

The new 750,000 sq. ft. power train plant will produce four-cylinder twin-cam 16 valve engines, front and rear axles and steering components. It will employ 500. Production of axles is slated to begin this fall with engine production following in the fall of 1989. Production of steering components is scheduled to begin in 1991. At full operation in 1991, the local content for Toyota's U.S.-made Camrys will reach 75%.

Toyota first announced its decision to locate U.S. production in Kentucky on December 11, 1985. Work on an $800 million automobile manufacturing plant was completed early this year and on May 26 the company's first Camry 4-door sedan rolled off the line. At full production TMM will employ 3,500 and produce 200,000 Camry sedans annually.