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Toyota to Build Lexus in North America

6 April 2000

Toyota to Build Lexus in North America; Popular Lexus RX 300 Sport Utility Vehicle to Roll Off Line in 2003

    ERLANGER, Ky., April 5 Toyota announced today that its
Cambridge, Ontario, plant will build the Lexus RX 300 beginning in 2003,
making Toyota Motor Manufacturing Canada, Inc. (TMMC) the first plant outside
Japan to produce a Lexus model.
    "It is Toyota's intent to build automobiles in the countries where we sell
our products in volume," said Tag Taguchi, president of Toyota Motor North
America.  "All of our North American plants have earned a reputation for
excellence, and there is no doubt the Cambridge plant will produce the
superior quality that Lexus consumers demand."
    In 1999, Lexus sold 73,498 RX 300s in the United States and 3,109 in
Canada.
    The announcement is particularly good news for U.S. Lexus dealers because
the RX 300 represents the fastest growing segment of the luxury industry.
    "RX 300 was the first of a new breed of car-based luxury SUVs, combining
sedan-like comfort with truck-like ruggedness, and it continues to lead the
segment," said Jim Press, executive vice president of Toyota Motor Sales,
U.S.A., Inc.  "When we launch the first North American-built RX 300, you can
bet our passion for perfection will continue."
    Toyota also announced that TMMC would be increasing its capacity by 20,000
vehicles annually, bringing its total production capability to 220,000.  That
increase would add another 300 jobs at the Cambridge plant.  To accommodate
the RX 300 production and capacity increase, Toyota will invest another
$450 million (U.S.) at TMMC, which currently builds the Corolla and Camry
Solara.
    To allow for Lexus production, Solara will move to the Georgetown, Ky.,
plant, which currently makes the Camry sedan as well as Avalon and Sienna.
This will allow the Kentucky plant to serve as the core manufacturing facility
for three vehicles that share the same platform, thus maximizing production
efficiency.  Capacity will remain the same.
    To coincide with that move, Sienna minivan production will shift from
Georgetown to the Princeton, Ind., plant.  Last December, Toyota announced its
plans to increase annual capacity at Toyota Motor Manufacturing, Indiana by
150,000 vehicles as part of the company's intention to boost North American
production capacity from 1.25 million to 1.45 million vehicles per year.  The
expansion will accommodate Sienna production, currently made at Toyota's
Kentucky plant, while the existing facility will produce the Tundra and
Sequoia.
    "Toyota is confident that with these additions and rotation of models at
our plants, we will be able to maximize efficiency within our North American
plant operations," said Teruyuki Minoura, president and CEO of Toyota Motor
Manufacturing North America, Inc.
    "The team members at each of our four plants here have achieved excellence
in quality and have met every production challenge presented to them.  With
their continued commitment, we will be able to provide the American consumer
with the highest quality locally produced cars and trucks on the market,"
Minoura said.
    The RX 300 will bring to nine the number of Toyota models built in the
U.S. and Canada.  With today's manufacturing announcements, total North
American investment will be nearly $13 billion, with direct employment of
nearly 33,000 people by 2003.