Toyota Announces $7.8 Billion Long-Term Diversity Commitment

           Innovative Program to Create Retail Career Opportunities

    TORRANCE, Calif., Aug. 9 Toyota announced today a
comprehensive rededication to diversity and inclusion that will generate more
than $7.8 billion in sustainable minority economic impact by Toyota's North
American companies over the next 10 years.  These funds will flow to the
minority community through procurement, advertising, dealer development,
community involvement, professional services and career training.
Representing a dramatic increase over the present levels of commitment, the
plan also includes processes to ensure accountability and delivery of
promises.  The strategy was jointly developed by Toyota Motor Sales (TMS),
U.S.A., Inc. and Toyota Motor Manufacturing, North America, Inc.
    Toyota also announced a visionary multi-million-dollar industry initiative
to improve minority representation in lucrative dealership management and
technical positions.  This new program will go beyond traditional corporate
diversity measures that focus on compliance and quotas, helping to launch
careers and fill the automotive dealership pipeline with diverse talent.
    "With this comprehensive, 21st Century strategy for diversity and
inclusion, which is firmly rooted in the Toyota principles of continuous
improvement and respect for people, we have the opportunity to stand out as a
leader in corporate diversity," said James E. Press, TMS executive vice
president and chief operating officer.
    A series of meetings with Rainbow/PUSH Coalition founder Reverend Jesse
Jackson provided Toyota with an opportunity for a comprehensive review of its
existing diversity programs.  As a result, significant new opportunities
benefiting both Toyota and the auto industry were identified, making possible
the benchmark plan announced today.  The company will seek additional feedback
and support from a variety of minority organizations and leaders as it goes
forward.
    Creation of career opportunity for diverse candidates at all levels,
especially retail dealership management, is a primary goal.  Toyota's newest
programs, collectively named the "Toyota Avenues for Advancement Program"
(TAAP), will address this issue by creating sustainable avenues for diverse
candidates to become successful dealership service technicians and dealership
managers.
    The Toyota Avenues for Advancement Program has two components:

     1. The automotive retail environment, which employs more than 1 million
        Americans at more than 22,000 dealerships, offers thousands of well-
        paying management opportunities. Toyota intends to take a leadership
        role in opening opportunities for minority candidates.  Partnering
        with its own dealers as well as major publicly and privately owned
        dealer groups representing all makes, Toyota funding will help
        subsidize real-world experience, as well as education through such
        institutions as Northwood University's automotive retail curriculum
        and the University of Toyota.

        TAAP will open a new dimension to increase diversity in the retail
        environment.  Retail automotive experience, especially at the general
        manager level, is considered essential for anyone aspiring to acquire
        equity in a dealership.

     2. TAAP's second component addresses technical job opportunities.  Each
        year, the auto repair and service industry faces a shortage of 60,000
        trained technicians to service today's sophisticated cars and trucks.

        Toyota will replicate the successful Los Angeles Urban League
        Automotive Training Center (ATC), a joint venture between TMS and the
        Los Angeles Urban League, by opening a similar training facility in
        the eastern United States.  Like the ATC in Los Angeles, the center
        will offer no-cost job training and placement for unemployed and
        underemployed urban residents in the automotive service industry.

        TMS has invested more than $7 million in the ATC since 1993.  With
        more than 860 graduates to date, the ATC has generated more than $20
        million in economic impact.  In support of the new center, Toyota will
        invest an additional $4 million in construction and $1 million
        annually to operate the new facility in the East.

    "Our mission is to prepare professionals to succeed at all levels and
types of retail operations," said Press.  "The Toyota Avenues for Advancement
Program will create a talent pool, helping fill the pipeline with qualified
service and management candidates, for not only our own dealers but for the
entire automotive industry, benefiting both dealers and their customers."
    Other major elements of Toyota's overall diversity programs are centered
in the areas of procurement, advertising, minority dealer development,
philanthropic activities and corporate governance.  Examples of specific
initiatives in these areas announced today include:

     -- Toyota will increase spending with minority advertising firms 37
        percent to $50 million per year and will retain a new African-American
        agency to join its two existing agencies by September 1, 2001.

     -- While Toyota leads the industry in ethnic diverse minority dealer
        success and is number two among major carmakers for percentage of
        ethnically diverse minority dealers, the company's goal is to be the
        leader in both respects.  Despite business realities such as
        constraints by state laws, the role of publicly owned dealer groups,
        and the unpredictable number of dealerships for sale, Toyota is
        committed to increasing its ethnic diverse minority dealer count by
        four to six per year over the next 10 years.  The company also will
        increase its dealer development financial assistance budget by more
        than 67 percent to $25 million.

     -- Toyota's U.S. operations will be responsible for an annual total of
        $700 million in procurement from minority-owned suppliers.  Through
        active supplier development programs, the company's manufacturing arm
        (Toyota Motor Manufacturing North America) is well on track to surpass
        its commitment to achieve 5 percent of its purchasing from minority
        businesses in 2002, a target level shared with the other "Big 4"
        automakers.  Toyota's sales and marketing operation (Toyota Motor
        Sales, U.S.A.) expects to reach the same 5 percent level a year later.
        The companies' procurement departments also challenge their suppliers
        to match the same level of minority spending among their key
        second-tier suppliers.

     -- As an international company, Toyota Motor Sales, U.S.A., is a wholly
        owned subsidiary of an overseas firm and, therefore, does not have the
        traditional American board of directors structure.  In a move believed
        to be unprecedented for a multi-national company, TMS will establish
        an outside diversity advisory board, consisting of high-level members
        with experience in such fields as business, law, labor and government.
        To be formed by the end of this year, advisory board positions will be
        structured as closely as possible to traditional board members, who
        participate in strategic decisions.  Toyota's vision is to make this
        board a model for diversity guidance.

    Among other provisions of Toyota's far-reaching and accelerated diversity
efforts are enhancement of its community involvement and philanthropy programs
and expansion of minority representation at every level within its workforce,
already one of the most diverse in the auto industry.
    "Toyota has built its reputation for quality on the idea of continuous
improvement and respect for people," said Press.  "That is why we are
rededicating ourselves to what is not just a social responsibility but a
business imperative.  We believe this strategic diversity plan reflects well
on Toyota's business culture and on the efforts of the Rainbow/PUSH Coalition
to improve society."

    CONTACT:  Media Relations, +1-310-468-5297, or Mike Michels,
+1-310-468-7730, (mobile) +1-310-200-4968, mike_michels@toyota.com , or Tracy
Underwood, +1-310-468-5278, tracy_underwood@toyota.com , both of Toyota Motor
Sales, U.S.A., Inc.

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