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Toyota Starts New Diesel Engine Production in Poland

Toyota Motor Industries Poland (TMIP) today officially started the production of a new 2.2-litre diesel engine – to be used in the Toyota Avensis model manufactured in the U.K. The annual production capacity of TMIP will be a targeted 180,000 units, encompassing the 177 DIN hp and 150 DIN hp versions of the new four-cylinder diesel engine. TMIP’s current staff of 350 employees will increase to approximately 900 employees in 2006, while total investment in the plant amounts to €200 million.

In 2005, Toyota’s manufacturing operations will count eight manufacturing plants in six different countries (U.K., France, Poland, Turkey, Portugal and the Czech Republic).

“Toyota’s relations with Poland continue to strengthen, thanks to the start of production of our cutting-edge diesel engine at TMIP,” said Shinichi Sasaki, President and CEO of Toyota Motor Engineering & Manufacturing Europe*. “Our other plant in Poland began engine production and increased its transmission capacity in January – a clear indication of our belief that Poland is a valuable economic and business partner. We also would like to thank Toyota’s many Polish family members for their dedication toward offering superior quality that always puts the customer first,” Mr. Sasaki added.

Toyota’s other Polish plant - Toyota Motor Manufacturing Poland (TMMP) – began production of manual transmissions in April 2002. In January 2005, TMMP started production of a new gasoline engine and manual transmission – to be used in the forthcoming small passenger cars made jointly by Toyota and PSA Peugeot Citroën. Annual production capacity for the 1.0-litre engine and manual transmission will be a targeted 250,000 units and 300,000 units respectively – bringing TMMP’s eventual total transmission production capacity to 550,000 units. Total employment at TMMP will reach approximately 1,800 employees by the end of 2005 – while total investment amounts to €400 million.

The Toyota Peugeot Citroën Automobile Czech (TPCA) plant in Kolin, Czech Republic, is a joint venture between Toyota and PSA Peugeot Citroën. TPCA will this year start manufacturing 300,000 small passenger cars, of which 100,000 will be Toyota AYGOs, with the remainder allocated to the Peugeot and Citroën brands.

Toyota achieved an eighth consecutive record year of sales in Europe in 2004. With 915,966 vehicles delivered – 24,913 Lexus and 891,053 Toyota – Toyota saw sales rise by 10% over the previous year, in a total market up 2%. This resulted in a market share of 5% - the highest market share ever for Toyota in Europe. Toyota also produced 582,695 cars, 494,635 engines and 195,163 transmissions at its plants in the U.K., France, Turkey and Poland. For 2005, Toyota has set the target of selling 980,000 Toyota and Lexus vehicles in Europe.

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