TOYOTA'S U.S. AUTO PLANT TO EXPAND

Toyota City―TOYOTA MOTOR CORPORATION (TMC) announced today that its U.S. manufacturing arm, Toyota Motor Manufacturing, U.S.A., Inc. (TMM) will go ahead with a major expansion in Georgetown, Kentucky.

The expansion means future production could grow by as much as 200.000 units annually and will result in at least 1,500 new American jobs. It also means an additional investment of $800 million, bringing the total investment at TMM close to $2 billion. The new facility is slated to produce more Toyota Camrys, which TMM currently builds at a pace of more than 200.000 yearly.

In addition to allowing Toyota to increase the percentage of American-made vehicles it sells in the U.S., the expansion will provide new opportunities for U.S. auto suppliers. According to TMM officials, the number of U.S. suppliers used by TMM for parts and raw materials has more than doubled since production began in 1988. At the same time, TMM purchases of U.S. parts and materials in dollar terms will have increased 10-fold by next year to more than $700 million.

Construction for the expansion is expected to begin in Spring 1991, with production to begin by the end of 1993. TMM officials also said the expansion will allow the company to consider more exports in the future. TMM currently exports Camrys to Taiwan and in 1992 will begin exporting as many as 40.000 right-hand-drive Camrys and up to 100,000 engines annually to Japan.

The TMM expansion is the latest in a series of announcements regarding Toyota's overall localization activities in the U.S. In 1989, Toyota announced plans to invest over $144 million to expand its U.S. R&D facilities, including Calty, its U.S.-based automotive design center, and two major additions to the Toyota Technical Center in Torrance, California and Ann Arbor, Michigan. Earlier this year, Toyota also announced plans to build a major vehicle proving ground in Arizona, which will cover 12,000 acres (ca. 5,000ha.) and be one of the largest in the world.