Financial Times: Toyota To More Than Double European Research Budget

TOKYO March 1, 2004; Dow Jones reported that Toyota Motor Corp. is to more than double its European research and development budget as the Japanese carmaker tries to produce vehicles more tailored to European tastes, the Financial Times reported on its Web site Tuesday.

The world's second-biggest vehicle manufacturer will spend EUR75 million on new buildings at its development center in Belgium and recruit 200 engineers, taking the workforce to 350, the FT reported.

The investment will allow Toyota to develop core parts of a vehicle in Europe for the first time, underlining its hopes of growth in the region.

The group reached its target of selling 800,000 vehicles annually in Europe last year, two years early, and hopes to increase that by 50% by 2010, to 1.2 million - more than Citroen and close to Ford Motor Co. and Opel.

Akihiko Saito, executive vice president for vehicle development, said: " Toyota's new investment in its R&D center not only shows the importance we attach to R&D. It also shows the importance we place on Europe and our intention to continue to develop, design and build cars in Europe for Europeans," the FT reported.

Toyota has been leading the Japanese race into Europe after its first car developed specifically for Europe - the Yaris hatchback - proved a success.

Japanese manufacturers are growing strongly in western Europe, with sales rising 9% last year in a market that fell 1.3%.