Toyota and China FAW Establish Joint Venture to Build Engines in Changchun, China

Tokyo, Japan, Mar. 29, 2004 - (JCN Newswire) - Totota Motor Corporation
announced today that TMC and China FAW Group
Corporation (FAW) established on March 25 a joint venture to manufacture
engines in Changchun City , Jilin Province, China . FAW Toyota Changchun
Engine Co., Ltd. (FTCE) will have an annual production capacity of
130,000 engines and will commence production of 3.0-liter V6 gasoline
engines at the beginning of 2005.

After signing a joint agreement in August 2002, TMC and FAW have been
steadily moving forward in their collaborative efforts regarding
automotive operations in China . The two companies signed an agreement
in April 2003 regarding the joint production of four vehicle models and
technology transfer. So far, the Land Cruiser and Land Cruiser Prado
SUVs and Corolla passenger car have already begun production.

FTCE will produce engines for the Crown luxury sedan, which is to be
made at Tianjin FAW Toyota Motor Co., Ltd. (TFTM).

FTCE is capitalized at US$84,540,000 (approx. 10 billion yen), with both
TMC and FAW each providing 50% of the equity. Jin Yi (Vice President,
FAW) is scheduled to assume the position of chairman, and Masami Yamada
( Project General Manager , China Div., TMC) is to be FTCE's president. 


Outline of FAW Toyota Changchun Engine Co., Ltd. (FTCE) 


Company name            FAW Toyota Changchun Engine Co., Ltd. (FTCE) 
Location                Economic and Technological Development Zone, 
                         Changchun City, Jilin Province, PRC 
Representatives         Chairman: Jin Yi (Vice President, FAW) 
                        Vice chairman: Akio Toyoda (Senior Managing
Director, TMC) 
                        President: Masami Yamada (Project General
Manager, 
                         China Div., TMC) 
                        Vice president: Xu Bo (Senior Manager, Planning
Division, FAW)  
Established             March 25, 2004 
Duration of JV          30 years 
Capitalization          US$84,540,000 (approx. 10 billion yen) 
Total investment        Approx. 16 billion yen 
Equity participation    TMC: 50%; FAW: 50% 
No. of employees        Approx. 150 (at start of production in beginning
of 2005) 
Land area               Approx. 500,000 square meters 
Product lineup          3.0-liter V6 gasoline engines 
Production capacity     130,000 units/year 
Start of production     Beginning of 2005