TOYOTA MOTOR CORPORATION AND PSA PEUGOT CITROEN AGREE TO ENTER A COOPERATION ON JOINT DEVELOPMENT AND PRODUCTION OF SMALL CARS

TOYOTA MOTOR CORPORATION AND PSA PEUGOT CITROEN AGREE TO ENTER A 
COOPERATION ON JOINT DEVELOPMENT AND PRODUCTION OF SMALL CARS

Brussels, July 12, 2001 (JapanCorp.Net) - Toyota Motor Corporation (Toyota) 
President Fujio Cho and PSA Peugot Citreon CEO Jean-Martin Folz signed 
today a memorandum of understanding and an agreement for the joint 
development and production of small, entry-level passenger vehicles 
primarily designed for European markets.  Production is scheduled to start 
in 2005.  This new platform will be dedicated to the production of vehicles 
for Toyota and the two brands of PSA Peugot Citreon.

In order to respond to the changing needs in Europe, a market where demand 
for compact vehicles remains as strong as ever and is forecast to increase 
in the years ahead, Toyota and PSA Peugot Citreon have decided to jointly 
introduce a new class of cars, positioned below current entry level models.

The vehicle concept to be jointly developed by the two companies will be a 
lean, modern four-seat model that features the most advanced technologies 
in the areas of safety, reliability and environmental protection.  Equipped 
with the latest generation of 1.0-liter gasoline engines and 1.4-liter 
diesel engines, it will be especially fuel-efficient.

Toyota and PSA Peugot Citreon will pave the way for a new market of 
vehicles, which will thoroughly retain all the essential features of a real 
car, and will offer, at attractive prices, efficient solutions to 
environmental and urban mobility-related requirements.  Target customers 
also include current buyers of used or outdated cars.

The project will offer clearly differentiated models and specific styles 
for the vehicles of the two groups while guaranteeing strong commonality 
for the structures and components.

Toyota will be in charge of development and production while PSA Peugot 
Citroen will be responsible for procurement.  The two groups will set up a 
joint venture company on a 50/50 basis.  A final agreement will be 
completed by year-end.  The plant is expected to have a production capacity 
of around 300,000 units a year.

Total investment for this cooperation is estimated at approximately 1.5 
billion euros.

Press Contacts:

Toyota Motor Corporation
Tetsuo Kitagawa / Tara Takada of International Communicaitons Department
Tel. 00 81 3 3817 9170 / 9178
Fax. 00 81 3 3817 9036

PSA Peugot Citroen
Hugues Dufour / Marc Ferrant of Press Department
Tel. 00 33 1 40 66 5381 / 4099
Fax. 00 33 1 45 00 5452

Toyota Motor Europe Marketing and Engineering
Jacques Pieraerts of Corporate Communications Department
Tel. 00 32 2 745 2030
Fax. 00 32 2 745 2098