Toyota 2015 Annual Report Download - page 55

Set forth below is information with respect to Toyota’s material plans to construct, expand or improve its
facilities between April 2016 and March 2017, presented on a “by subsidiary” basis and as reported in Toyota’s
annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.
Description of Activity
Total Cost
(Yen in billions) Location
Primary
Method of
Financing
Japan
Investment primarily in manufacturing facilities by
Toyota Motor Corporation .......................... 380.0 Japan Internal funds
Investment primarily in manufacturing facilities by
Hino Motors, Ltd. ................................. 52.0 Japan Internal funds
Outside of Japan
Investment primarily in manufacturing facilities by
Toyota Motor Manufacturing, Kentucky, Inc. ........... 98.5 United States Internal funds
Investment primarily in office facilities by
Toyota Motor North America, Inc. ................... 52.1 United States Internal funds
Investment primarily in vehicles by
Toyota Motor Sales, U.S.A., Inc. ..................... 38.2 United States Internal funds
Investment primarily in manufacturing facilities by
Toyota Motor Engineering & Manufacturing North
America, Inc. .................................... 32.0 United States Internal funds
Set forth below is additional information with respect to Toyota’s material plans to construct, expand or
improve its facilities.
Toyota completed annual production capacity increase at its Argentina factory from 90 thousand units to
140 thousand units at the end of 2015, and at its Sorocaba Plant in Brazil from 70 thousand units to 110 thousand
units in January 2016. Toyota plans to increase annual production capacity in Turkey from 150 thousand units to
280 thousand units beginning at the end of 2016, to build a new plant in Mexico in 2019 and to launch a third
plant in Guangzhou in China in 2018. Tianjin FAW Toyota Motor Co., Ltd. also plans to construct a new
production line to replace an aging existing line in the middle of 2018. At the beginning of 2019, Toyota plans to
launch a new plant in Malaysia dedicated to passenger vehicles with annual production capacity of 50,000 cars.
To enhance production capacity of auto parts, Toyota constructed a plant for hybrid vehicle battery
production in China in September 2015 and a plant for passenger vehicle engine production in Indonesia and
Brazil in February 2016.
Toyota does not collect information on the amount of expenditures already paid for each plant under
construction because Toyota believes that it is difficult and it would require unreasonable effort or expense to
identify and categorize each expenditure item with reasonable accuracy as past and future expenditures. Toyota’s
construction projects consist of numerous expenditures, each of which is continually being adjusted and incurred
in variable and constantly changing amounts as part of the overall work-in-progress.
Seasonality
Toyota does not consider its seasonality material in the sense of significantly higher sales during any certain
period of the year as compared to other periods of the year.
Legal Proceedings
From time-to-time, Toyota issues vehicle recalls and takes other safety measures including safety campaigns
relating to its vehicles. Since 2009, Toyota issued safety campaigns related to the risk of floor mat entrapment of
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