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Toyota's U.S. Parts and Materials Procurement Tops $7 Billion

28 July 1997

Toyota's U.S. Parts and Materials Procurement Tops $7 Billion; Growth in Local Production Leads to 8.9 Percent Increase for Fiscal Year 1997

    NEW YORK, July 28 -- Toyota Motor Corporate Services of North
America, Inc. announced today that Toyota's purchasing of parts and materials
from U.S. suppliers totaled $7.04 billion in the fiscal year ending March 31,
1997, an increase of 8.9 percent from the previous year.
    U.S. parts and materials purchased for production in the U.S. equaled
$5.43 billion of the total, with parts and materials exported to Japan
totaling $1.61 billion.
    Toyota's procurement of U.S. parts has been increasing steadily during the
last seven years, rising from $2.5 billion in 1990.  Cumulatively, Toyota has
purchased more than $33 billion in auto parts from U.S. suppliers since 1990.
This growth has led to an increase in Toyota's U.S. supply base which now
totals approximately 500 supplier relationships.
    Increased parts procurement is a natural progression of Toyota's plan to
localize vehicle production.  In 1990, 33 percent of the vehicles sold in the
U.S. were North American produced. Today, North American produced vehicles
represent more than 60 percent.  Since 1987, Toyota's presence in the U.S. has
grown substantially with increased investment, production capacity, and
employment.
    In June, production at all of Toyota's U.S. manufacturing sites increased
as compared to June 1996.  Overall production increased by 15.8 percent at
Toyota Motor Manufacturing, Kentucky (TMMK), which produces the popular Camry
and Avalon models plus the soon-to-be-sold Sienna minivan.  Toyota Corolla and
Tacoma pickup truck production also increased by 8.7 percent at NUMMI,
Toyota's Fremont, Calif., joint venture with General Motors.
    Toyota continues to localize U.S. production with two new manufacturing
facilities currently under  construction.  Local engine production will
increase when Toyota Motor Manufacturing, West Virginia (TMMWV) in Buffalo
begins operations in late 1998, with annual capacity of 300,000 4-cylinder
engines for North American-built Corollas.  Also, Toyota Motor Manufacturing,
Indiana (TMMI) will produce the T100 truck with an initial capacity of 100,000
units.

SOURCE   Toyota Motor Corporate Services