Toyota Boshoku America Announces Merger of Two Companies in Mexico

Major Auto Industry Supplier to Consolidate Interior Parts Production Companies

RAMOS ARIZPE, COAHUILA, Mexico, Jan. 8 -- Toyota Boshoku America (TBA) leaders announced today, the recent merger of two of its sister automotive parts production subsidiaries located in Northeast Mexico.

Toyota Boshoku is aiming to establish efficient business management structures by strengthening collaboration within group companies. This includes establishing strategic regional head offices which serve as leaders in each region of the world. The Toyota Boshoku America region includes North, Central and South America.

The TBA companies in consolidation are Toyota Boshoku Monterrey, S.A. de C.V. (TBMA Santa Catarina in Nuevo Leon) which makes seat covers for Toyota Motor's Sienna; and Araco de Mexico, S.A. de C.V. (Ramos Arizpe in Coahuila) which makes seats for General Motors' Chevrolet HHR, Chevy Tahoe, and GMC Yukon.

Made effective January 1, 2008, as a merging corporation of TBMO, the company is now named TB de Mexico, S.A. de C.V.

Toyota Boshoku America is a premier manufacturer of automotive interior systems which include seats, door trims, headliner sub-stratas, carpets, fabrics, straps and round recliners in addition to air and oil filters and power train systems for a variety of customers such as Toyota Motor Corporation and General Motors.

The Toyoda (now Toyota) Boshoku Corporation was founded by Sakichi Toyoda in 1918, and became the foundation for what later evolved into the Toyota Group. Toyoda Boshoku helped establish Toyota Motor in the 1930's by providing start-up capital and dispatching key executives to the car company. The famous Toyota Production System (TPS) was created with the former employees of Toyota Boshoku. In 2004, Toyota Boshoku merged with Araco Corporation and Takanichi Co., Ltd. to become Toyota Boshoku Corporation.

  Outline of Newly Merged Joint Venture
  1. Company Name:    TB DE MEXICO, S.A. DE C.V.
  2. Established:     January 1, 2008
  3. Location:        Ramos Arizpe, Coahuila, Mexico
  4. President:       Hisashi Mori
  5. Capital:         $1.8 Million USD (20,088,000 pesos)*
  6. Investment Ratio:Toyota Boshoku America, Inc. -- 98%
                      Toyota Tsusho Corp. -- 2%
  7. Products:        Automotive Seats, Seat Covers
  8. Sales:           $119 Million USD (1,299,000,000 pesos)
  9. Employee:        Approx. 450 (2008 plan)
       * Exchange rate: 1 peso = 0.09 USD

  About Toyota Boshoku America, Inc.

Toyota Boshoku Corporation is based in Kariya, Japan with revenues of $9.5 billion (20,684,350,681 pesos) and operations in over 20 countries. Its wholly-owned subsidiary, Toyota Boshoku America and its affiliates employ more than 6,600 team members and has 23 locations throughout the United States, Canada, Mexico and Argentina.