Toyota to Build Lexus Engines and Transmissions in West Virginia

    BUFFALO, W. Va., Jan. 26 Toyota announced today
that it will bring production of engines and transmissions for the popular
Lexus RX 300 sport utility vehicle to its Buffalo, W. Va. plant.
    "This will mark the first time Lexus has produced engines outside of
Japan," said Tag Taguchi, president and CEO of Toyota Motor North America.
"This decision shows the high level of confidence Toyota has in the
outstanding West Virginia team members."
    Last year, Lexus was the number one selling luxury brand in the United
States for the first time ever. Timing for Lexus engine and transmission
production will coincide with the RX 300 vehicle production move to Toyota's
Cambridge, Ont. plant in 2003.
    Toyota will invest an additional $50 million for equipment and tooling to
accommodate Lexus V6 engine and automatic transmission production, as well as
to expand capacity of the four-cylinder line at the Buffalo plant by 40,000
engines annually. The four-cylinder line will add production for Toyota's new
Matrix, just introduced at the Detroit auto show, and for the GM Vibe, to be
produced at New United Motor Manufacturing.  Combined four-cylinder and V6
engine capacity will grow to 540,000 annually.
    With today's announcement, employment is projected to climb to 1,000 by
2003 and investment will grow to $950 million.  Before today's announcement,
maximum employment was projected to be 800.  This is the third time Toyota has
expanded TMMWV since the original plant was announced in 1996.  Current
employment at the Buffalo plant is 725.
    U.S. Senator Jay Rockefeller, who has participated in every TMMWV
announcement to date, talked about the excellent relationship West Virginia
has developed with Toyota, the world's third largest automobile manufacturer.
    "Twenty years ago it was a dream of mine that Toyota would come to West
Virginia and set up a production plant.  Close to five years ago, that dream
came true," Rockefeller said, "and today I'm thrilled that Toyota is bringing
their most sophisticated engine to Buffalo.  In addition to the 1,000 high
paying jobs Toyota has placed in West Virginia, they have also brought
prestige and recognition to our state.  I couldn't be more proud."
    Newly elected Governor Bob Wise also expressed his enthusiasm about
today's news.
    "The announcement of a third expansion of the Toyota plant is a great day
for West Virginia and a great start for our new administration.  As governor,
one of my economic development priorities is investing in existing jobs and
retaining existing businesses," he said.  "The continued growth of a world-
class company like Toyota is a testament to the quality of our workforce and
sends a strong message that West Virginia is a great place to do business."
    TMMWV has steadily increased production since building its first four-
cylinder engine in December 1998.  In 2000, the plant produced 192,069 four-
cylinder and 98,140 V6 engines.  Production of automatic transmissions begins
later this year.  In 2003, TMMWV will produce engines for five North American-
built vehicles.  They are: Corolla, Matrix, Sienna, RX 300 and Vibe.
    Overall, Toyota employs more than 30,000 in North America, with investment
of more than $11 billion.  The company now makes eight vehicles in the U.S.
and Canada.  With today's announced expansion of TMMWV, Toyota's engine
capacity in North America will exceed one million.
    Visit Toyota's Website at http://www.toyota.com or Toyota's on-line newsroom:
pressroom.toyota.com