TMC to Produce a New Model in Kyushu, Japan and Lexus ES 350 in Kentucky, United States

Toyota Motor Corporation (TMC) announces that its vehicle and engine production subsidiary in Kyushu, Toyota Motor Kyushu, Inc. (TMK) will start producing a new model in late 2014.  In addition, Toyota Motor Manufacturing, Kentucky, Inc. (TMMK), a TMC vehicle and engine production subsidiary in the United States, will begin producing the Lexus ES 350 for sale in the North American market in the summer of 2015.

TMK, positioned as TMC’s second production base in Japan after the Chubu region (central Japan), is to produce the new model at a pace of 80,000 units a year.  Utilizing the quality control and improvement initiatives developed since production began there in 1992, TMK produces high-quality, high value-added vehicles, and plays a vital role within the Toyota group of companies.

TMMK is to produce 50,000 ES 350 vehicles a year for the North American market to enable more-timely delivery.  TMK will continue to produce the ES 250, ES 300h and ES 350.

With the start of ES 350 production, TMMK’s total production capacity will be increased from 500,000 to 550,000 vehicles per year, enabled through a planned additional investment of approximately 360 million U.S. dollars.  The investments have been made to maximize benefit-cost ratio to enhance overall profit structure and to ensure the level of Lexus quality that consumers expect.  TMMK intends to hire approximately 750 new employees.

Remarks by TMC President Akio Toyoda concerning ES Production in TMMK

Good morning to everyone here in New York and to those of you in Kentucky.   I have a special place in my heart for America … its people … and its communities.  This is where I went to graduate school and worked for a few years.   So … today … I am pleased to announce one of our worst kept secrets … that … starting in 2015 … we will build the popular Lexus ES 350 sedan in the United States on a new, dedicated assembly line at our plant in Georgetown, Kentucky.   It is fitting that the first country to build the ES outside of Japan is the United States … because this is home for Lexus … it is where the brand was founded … and it is still the biggest market for our luxury brand.   And Americans love the ES.  Since 1990 … we have sold nearly 1.2 million ES sedans in the U.S. … and it has one of the highest customer loyalty rates in the Lexus lineup.   This decision is in line with two key goals: first … to better serve our U.S. customers and second … reduce the effects of the exchange rates on our customers.   Here in the United States … we chose Kentucky because of our successful 25-year partnership with the state.   I want to personally thank Governor Steve Beshear for creating a positive business environment and supporting our partnership … which is still going strong after more than a quarter century.   I also want to thank local officials in Georgetown and Scott County for their strong support over the years.   It is also fitting that we chose Kentucky because it was Toyota’s first stand-alone plant in America.  So in a way … for manufacturing … Kentucky is Toyota’s home.   It also has some of the most-experienced Toyota team members in the world.  To our Kentucky teams watching this webcast … this is a tribute to your extraordinary efforts and the hard work you have put into every single car for the past 25 years.   Congratulations … and keep up the good work!   Now … along with bringing ES production to the U.S. … we recently made organization changes to make faster decisions that will better serve our customers.   For instance,  – Jim Lentz is now CEO of Toyota North America region … – Mark Hogan … who I worked with at NUMMI plant in California … has been appointed a Toyota board member … – And Mark Templin … who ran Lexus U.S.A. … is now the Executive Vice President of Lexus International.   I am very confident in this new American leadership team.   In fact … the first decision they made … in less than one month … is to bring production of a Lexus model to the United States.   This is a new team … a new beginning … and a new Lexus.   We are making great changes at Toyota … but one thing will never change.  And that is our strong commitment to the U.S.   We are united and committed to fulfilling the needs of our customers … and strengthening local communities … here and around the world.

Thank you.

Overview of Toyota Motor Kyushu, Inc. (as of March 31, 2013)

Overview of Toyota Motor Manufacturing, Kentucky, Inc. (as of March 31, 2013)