Toyota 2006 Annual Report Download - page 39

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emphasizing the unmatched quality
of Toyota cars. At the same time, we
will further localize purchasing to
hone price competitiveness.
Market Strategy
Seek balanced enhancement of line-
up, marketing, and local production
capacity
Toyota aims to sell 1.20 million
vehicles in the European market
by 2010. To achieve that target,
our basic strategy is to increase
product appeal, sales capabilities,
and localization.
Responding to the strong interest
in environmental issues in the region,
we will add to our offerings of diesel
vehicles and hybrid models while
actively advertising their merits and
performance to grow vehicle sales.
To advance localization, we will
continue staged expansion of pro-
duction capacity for vehicles and
such major components as engines.
At our plant in France, which builds
the Yaris, we raised annual produc-
tion capacity by 30,000 vehicles, to
270,000 vehicles, in February 2006.
Currently under construction, our
new plant in St. Petersburg, Russia,
will produce 20,000 vehicles a year
after coming onstream in December
2007.
France plant (TMMF)
Czech plant (TPCA)
Toyota Europe Design Development (ED2)
(Côte d’Azur, France)
European Management Subsidiaries Integrate
In Europe in October 2005, we integrated our sales management company, Toyota Motor
Marketing Europe NV/SA; our production control company, Toyota Motor Engineering &
Manufacturing Europe NV/SA; and their holding company, Toyota Motor Europe NV/SA.
By joining forces, the three companies are intensifying coordination between production,
sales, and technology departments to enable us to move forward in the face of tough
regional competition.
Enlargement of European R&D Center
To further localize technology development and enhance our ability to develop products
that reflect Europe’s diversifying market, we expanded Toyota Motor Europe’s Technical
Center, completing new offices and testing facilities in January 2006. The Technical
Center will handle body engineering for models to be built in Europe and diesel engine
evaluation for models to be sold in Europe.
37
Avensis Corolla Aygo