Announcing the Toyota InfoTechnology Center 
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Tokyo - TOYOTA MOTOR CORPORATION (TMC) announced that it will establish in January 2001 the Toyota InfoTechnology Center Co., Ltd. (IT Center), a joint venture that will focus on research and development of advanced IT-related technologies centered on mobile and Internet technologies. The new company, with equity participation by Denso Corp., DDI Corp., Toyota Tsusho Corp., Aisin Seiki Co., Ltd., Kyocera Corp. and Toyoda Gosei Co., Ltd., will be headquartered in Meguro, Tokyo, and will set up a wholly owned yet-to-be-named American subsidiary in Palo Alto, California's Silicon Valley.  

The IT Center is to be capitalized at 2 billion yen, of which two-thirds will be financed by TMC. The capital is to be increased to 3 billion yen by the time the U.S. subsidiary is established. The new company will work with TMC and its group firms, as well as universities, research institutes, venture capital businesses and other organizations, to conduct the operations listed below with the aim of contributing to the network, platform and content service operations promoted by TMC, its group companies and other entities, by providing them with the results of its research and development.  

1. Market research and technological development for commercialization centered on mobile and Internet technologies
2. Identification and development of business models
3. Recruitment and fostering of IT human resources 

TMC views the information and communications business as one of its major next-generation operations and is actively promoting such business. As such, TMC will work with the new KDDI, a full-service communications carrier to be established in October. In addition, TMC is engaged in unique information service businesses, such as in the field of ITS, including automotive multimedia, as well as Gazoo and other e-commerce businesses. Because TMC believes in continuing to provide these information services in the future, it will require advanced technologies in order to anticipate customer needs as well as create new demand. This requirement led to the plan for establishing the IT Center. In January 2000, TMC set up the BR (Business Reform) Global Strategic IT Dept., which has since discussed the functions and framework of the new company and other requirements.  

(September 25, 2000)