May 21, 2003

Toyota to increase production capacity in Europe

Toyota today announced plans to increase production capacity in Europe by moving from two to three work-shifts at its plants in Burnaston, UK, and Valenciennes, France, starting in the second quarter of 2004. Annual production capacity in the U.K. will increase from the current 220,000 vehicles to around 270,000 Toyota Corolla and Avensis. This will create about 1,000 new jobs at Toyota Motor Manufacturing UK (TMUK). Adding a third shift, Toyota Motor Manufacturing France (TMMF) could increase its current annual production capacity from 184,000 to 240,000 Yaris models. In a first phase, 500 new jobs will be created to bring annual capacity to 210,000 units.

This is the first time Toyota will run a three-shift system in a vehicle plant. The increased production at TMMF and TMUK is expected to benefit Toyota’s profitability in Europe. The decision is also consistent with Toyota’s philosophy of building cars where they are sold, in order to respond better to customer expectations and to contribute to the societies in which it operates.

With the current annual capacity of 100,000 vehicles at its Turkish Adapazari plant (TMMT) and the planned capacity increase at TMMF and TMUK, Toyota will have a total production capacity of about 610,000 vehicles per year. In addition, Toyota and PSA Peugeot Citro

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