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Toyota Announces Purchasing Targets From Minority Suppliers

12 November 1997

Toyota Announces Purchasing Targets From Minority Suppliers

    CINCINNATI, Nov. 12 -- Toyota will buy at least five percent
of its total Tier One purchases from minority suppliers by 2002, according to
plans announced today.
    In addition, Toyota said it expects its Tier One suppliers in North
America to make the same commitment of buying at least five percent of their
purchases from minority-owned companies.  Tier One suppliers are those firms
that supply directly to an auto maker.
    "Toyota's announcement is great news for minority businesses across the
country," said Harriet Michel, president of the National Minority Supplier
Development Council.  "Toyota was the first Japanese transplant automobile
company to join NMSDC.  It is encouraging to see such continued commitment
from one of the world's largest corporations."
    Toyota has steadily increased its production and procurement since it
began making vehicles in North America in 1984.  By next year, Toyota's North
American annual production capacity will exceed one million vehicles.
Toyota's overall spending with North American suppliers has grown to more than
$7 billion a year.
    Spending with minority suppliers has also grown dramatically.  Toyota's
North American manufacturing plants now buy parts, materials and services from
nearly 100 minority-owned firms, approaching three percent of Toyota's overall
procurement.
    "We have made steady progress so far," said Mikio Kitano, president of
Toyota Motor Manufacturing North America (TMMNA), "and today's announcement
shows our commitment is getting even stronger."
    TMMNA was established last year to support all of Toyota's North American
manufacturing operations.  The purchasing of parts, materials, equipment and
services falls under TMMNA's responsibilities.
    "Our customers in the U.S. are diverse, and so are our team members at our
North American plants," Kitano added. "That's why we think it makes good
business sense to further diversify our own supplier base and encourage our
Tier One suppliers to do the same.  More diversity leads to more ideas and
better products."
    The major new initiatives were announced at Toyota's eighth annual
Opportunity Exchange, an all-day trade show and conference designed to provide
a forum for minority firms to network with Toyota's Tier One suppliers.  This
year's event attracted a crowd of more than 1,300 participants, with more than
200 Tier One Toyota suppliers on hand to meet with minority businesses.  Each
year, Opportunity Exchange leads to millions of dollars worth of new business
for minority suppliers.
    This year's Opportunity Exchange was the biggest yet.  In addition to the
announcement of Toyota's new minority spending targets, the event also
featured presentations by Earl Graves, publisher of Black Enterprise magazine
and best-selling author, and Susan Taylor, editor of Essence magazine.
    Toyota, which now directly employs more than 20,000 in North America, has
plants in Kentucky, California, Missouri and Canada.  In addition, new plants
are now under construction in Indiana and West Virginia.  The current lineup
of North American-built vehicles includes the Camry, Avalon, Sienna, Tacoma
and Corolla.  The all-new Camry-based coupe and T100 will be added next year.

SOURCE  Toyota Motor Manufacturing North America, Inc.