Toyota 2006 Annual Report Download - page 37

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35
vehicles, targeting the younger genera-
tion, and the Prius hybrid vehicle
achieved steep increases in sales. In
2005, Lexus ranked as the best-selling
prestige-sedan brand in the United
States for the sixth successive year
thanks to robust sales of the new IS
and GS models and the marketing of
the RX400h SUV.
Market Strategy
Expand operations rooted in local
communities through further localization
Our plans call for further strengthen-
ing of North American operations
based on continued expansion of local
production capacity and enhancement
of lineups. In efforts to increase local
production, Toyota will commence
operations at a new plant in Texas in
Avalon
Tacoma
October 2006, step up production
capacity in Mexico in 2007, and begin
production at a second plant in Canada
in 2008. In addition, in spring 2007
annual production of 100,000 units of
the Camry for North America will
begin at the North American plant of
Fuji Heavy Industries Ltd.
In lineup enhancement, we forti-
fied hybrid vehicles by debuting a
Camry hybrid vehicle to complement
the Prius and the Lexus RX400h. Local
production of the Camry Hybrid is
scheduled to get under way in
October 2006 at our Kentucky plant.
In addition, to further the localization
of product development, we plan to
break ground for new facilities with
design capabilities at the Michigan
research and development center.
RAV4 Prius Scion tC
North American Production Support Center Opens
Adjacent to our Kentucky plant, we inaugurated the North American Production Support Center
(NAPSC) in January 2006, which began training for all major manufacturing processes. As a
branch of the Global Production Center, established in July 2003 within the Motomachi plant in
Japan, NAPSC will teach manufacturing, maintenance, and other fundamental skills to trainers
in the production divisions of our North American plants.
New Company Overseeing R&D and Production
In April 2006 in Erlanger, Kentucky, Toyota established a company with overall control of research
and development and production in North America: Toyota Motor Engineering & Manufacturing
North America, Inc. (TEMA). By integrating the production control functions of Toyota Motor
Manufacturing North America, Inc. (TMMNA), and the research and development functions of
Toyota Technical Center U.S.A. Inc. (TTC), the new company will raise the speed and efficiency of
workflow between the Company’s R&D and manufacturing arms while furthering localization.