The IMV Project

Toyota Introduces its Optimized Global Manufacturing and Supply System

In the summer of 2004 Toyota crossed the threshold to a new age of global production with the launch in Thailand of the Hilux Vigo pickup truck, available in standard cab, extra cab and double cab models. In September, the Kijang Innova minivan was unveiled in Indonesia. In November, Toyota introduced the Fortuner SUV in Thailand, making five new models all together.

The fact that all of these vehicles are locally made is impressive in itself, but Toyota's purpose was much larger. These five models -- three new pickups, one new minivan and one new SUV -- are part of the IMV (Innovative International Multi-purpose Vehicle) project. TMC Senior Managing Director Akio Toyoda called it "a new chapter in the history of Toyota . . . and in the history of the world automobile industry."

TMC Senior Managing Director Akio Toyoda

Toyota initiated the IMV project to create an optimized global manufacturing and supply system for pickup trucks and multipurpose vehicles to satisfy market demand in more than 140 countries worldwide.

IMV calls for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in the Philippines and India, for supply to the countries charged with vehicle production.

For vehicle assembly, Toyota will use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases will supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with the five all-new IMV vehicles. IMV-series vehicle production including that in countries other than the four main production bases is projected to exceed 500,000 units in 2006.

Akio Toyoda says the company's vision for the IMV models is for them "to perform equally well on unpaved byways and on urban highways, to be affordable for ordinary people, and at the same time to provide unprecedented satisfaction in terms of comfort, styling, handling, safety, fuel economy, and environmental sensitivity."

No matter where IMV vehicles are assembled or sold, Toyota wants customers to enjoy the highest "Made by Toyota" quality.

IMV project global standard models

Maximizing Non-Japanese Procurement

The IMV project is an unprecedented vehicle project for Toyota. It is being conducted almost entirely outside Japan, including purchasing, manufacturing and logistics.

One of Toyota's ultimate goals in the production of IMV models is to procure nearly 100% of vehicle components from sources outside Japan. At the time of the initial Thai and Indonesian launches, non-Japanese sources accounted for approximately 95% of vehicle content. Toyota's IMV lines in Argentina and South Africa will also be aiming to maximize non-Japanese procurement.

Toyota is confident that it can maintain high quality standards because of its long manufacturing experience in all of the areas where it is establishing IMV production bases. Thailand, for example, was one of the first nations where Toyota produced vehicles outside Japan. Toyota's manufacturing history there goes back more than forty years.

Globalization of Manufacturing

On a geographical and historical scale, the IMV project represents the third stage of manufacturing for Toyota. In the first stage, Toyota made vehicles only in Japan and exported the units to world markets. This was followed in the second stage by local manufacturing in key market areas. Now, supported by trade liberalization, such as CEPT (Common Effective Preferential Tariff) in the ASEAN countries, Toyota has entered the third stage by taking up the challenge of building a more efficient production and supply system on a global scale.

With this initiative, the globalization of Toyota's attitude towards “making things” and “quality” is becoming more important than ever.

"Global Best" and "Local Best"

Executive Chief Engineer
Kaoru Hosokawa

The IMV project aims to offer more attractive and more affordable products to its customers worldwide and simultaneously. Executive Chief Engineer Kaoru Hosokawa calls this the challenge of making the "Global Best."

To deliver class-leading power and fuel efficiency, Toyota developed a new gasoline engine and a new diesel engine, the latter featuring clean common-rail fuel-injection technology. Vehicle exteriors were designed to impart a bold impression with enduring appeal. All vehicles were also developed to meet 21st century customer demands for high levels of durability, safety, and spacious comfort. Special attention was paid to the suspension to assure ride comfort as well as ruggedness. As the name "Innovative International Multipurpose Vehicle" suggests, Toyota developed and tested these vehicles to maintain highly reliable performance under a wide range of conditions including unpaved surfaces and flooded roads.

Toyota realized that to satisfy the needs of particular locales, the IMV vehicles had to go beyond "Global Best" to achieve "Local Best." In the planning and development stages this meant listening to dealers and customers in Asia, Africa and South America and repeatedly debating the issues among members of the design and engineering teams.

Orders for the Thai-made Vigo had reached 76,000 by mid-November,and orders for the Indonesian-made Kijang Innova had exceeded 50,000 by the end of November 2004.

Hosokawa says, "The initial customer response to the IMV series has been gratifying. However, the real test will be in the months and years ahead. We look forward to extensive owner feedback so that we can continue to improve performance and better satisfy customer needs at the local level."

IMV Series Vehicles — Thailand Report

VIGO line-off ceremony in Thailand, August 2004

On August 30 Toyota Motor Thailand (TMT) held a ceremony at its Samrong plant to celebrate the first Hilux-Vigo pickup truck to roll off its line. To meet IMV project demands, TMT expanded the Samrong plant's annual production plans from 140,000 units to 280,000 units. Of these, 140,000 units will be for export to some 90 countries. Plant facilities were also upgraded with the latest manufacturing technology to assure the highest possible quality and efficiency, based on Toyota Production System principles.

TMT President
Ryoichi Sasaki

The IMV project also calls for Toyota to produce more than 240,000 diesel engines in Thailand a year, of which at least 130,000 are for export. Thailand is the second largest market for small one-ton pickup trucks after the United States. When TMT begins marketing the IMV series SUV ("Fortuner") in January 2005, all five IMV series vehicles -- three pickups, the minivan and SUV - will be available to Thai consumers.

Toyota has big plans for exports from Thailand. Speaking at an export ceremony held on November 11, 2004 at Thailand's Laem Chabang Port in Chonburi province, TMT President Ryoichi Sasaki said, "We are proud that Toyota Motor Thailand exports pickup trucks made using almost 100% local parts to 90 nations worldwide. When we add the value of the exported parts, the total value of export will be approximately 100 billion baht. We are proud to be part of the development of the Thai automotive industry and the Thai economy."


Export ceremony in Thailand

IMV Series Vehicles — Indonesia Report

Kijang Innova press conference in Indonesia, September 2004

On September 1, 2004, the first Kijang Innova rolled off the line at the TMMIN (Toyota Motor Manufacturing Indonesia) Karawang plant in West Java. The Innova brings a revolution in styling, comfort, performance, safety, and value to the Indonesian and global MPV market. In Indonesia the Kijang Innova was developed as a top-level family vehicle that offers a passenger-car-like ride. The Innova features an innovative minivan design, a newly developed VVT-i gasoline engine or newly developed diesel engine, and a rigid chassis for driving stability.

The roomy and convenient interior is equipped to provide one-class-higher comfort. Annual production for the Kijang Innova minivan is slated at 80,000 units a year (10,000 for export). TMMIN will also produce more than 180,000 gasoline engines (130,000 for export) per year.

TMMIN President Sachio Yamazaki said, "The IMV series Kijang Innova represents a full model change for the Kijang, which we have been building and selling in Indonesia since 1977. To prepare for the IMV project, we greatly increased the number of associates at our Karawang plant. We also strengthened our global supply network capability in many ways, including adopting electronic kanban (cards used to signal orders for parts). We are aiming to increase our exports, while achieving top world-class quality and customer satisfaction." At a ceremony in Jakarta on November 26 marking the first export of the Innova by TMMIN, Yamazaki said, "We have a commitment to contribute to the economic development of Indonesia. It is under that commitment that we start today to export the Kijang Innova."


TMMIN President Sachio Yamazaki	Export ceremony in Indonesia

Onward to Argentina and South Africa

The next stage will be for Toyota to roll out the IMV in Argentina and South Africa. Some major components will be provided from Asia, and finished pickup trucks and multipurpose vehicles will then be shipped from Argentina to Central and South America, and from South Africa to Africa and Europe. Following the economic recovery in Asia, markets in Africa and Central and South America are also trending toward expansion on the back of deep-seated demand potential for automobiles. Toyota sees these emerging markets as major growth centers for the automobile industry in the 21st century. The IMV project is now well on its way to helping Toyota meet future demand in these regions with the kind of vehicles people are dreaming of owning and driving.

Report compiled December 9, 2004, Public Affairs Division, Toyota Motor Corporation.