Tokyo -- (JCN Newswire) --

Toyota Motor Corporation (TMC) and subsidiary Toyota Technical Development Corporation (TTDC) have agreed to reorganize TTDC on January 1, 2016, integrating TTDC's vehicle R&D business, which includes vehicle engineering, testing and prototype-building, along with approximately 5,000 TTDC employees, into TMC. TTDC will continue its business of measuring-instrument development, data analysis, and other such R&D support functions.

Since TTDC's establishment in 2006(1) as TMC's technological development partner, TTDC has played a key role in vehicle development. TMC and TTDC have had separately defined development responsibilities, with TMC responsible mainly for discovering new R&D advancements, such as cutting-edge and foundation-making technologies, and TTDC mainly being in charge of furthering development of existing technologies.

The agreement between TMC and TTDC aims to achieve optimal R&D management in both companies. The reorganization will enable TMC to streamline a comprehensive vehicle-development structure for the enhancement of its efforts, such as TNGA(2), in making ever-better cars to achieve sustainable growth. Furthermore, concentrating respective R&D personnel under one organization will help bring out the fullest in employee abilities and stimulate personal growth.

The reorganization will also enable TTDC to focus solely on development support and effectively utilize its accumulated practical expertise. TTDC will be able to expand its services to support other members of the Toyota Group(3), thus helping to strengthen the vehicle development capabilities across the entire group.

Below is an outline of the reorganization. Further details are forthcoming.

I. Reorganization summary
1) Date of separation and integration: January 1, 2016 (scheduled)
2) Integration, form of company split: Simplified absorption-type company split through which TTDC, the splitting company, will transfer its vehicle development business to TMC, the successor company
3) Post-reorganization capital interest ratio in new company: TMC: 100 percent

II. Outline of TTDC following reorganization
1) Headquarters location: Hanamoto-cho, Toyota, Aichi Prefecture
2) Capitalization: (To be decided)
3) Main shareholder: TMC
4) Business portfolio: Development of measuring instruments, calibration of measuring instruments, data analysis
5) Number of employees: Approx. 1,000
6) Representative: (To be decided)

Notes:

(1) Name changed from Toyota Techno Service Corporation (established in 1982) in 2006
(2) Toyota New Global Architecture, a new framework for developing ever-better cars that blends planning and design
(3) http://www.toyota-global.com/company/profile/toyota_group/

About Toyota

<BR /><BR />Supported by people around the world, Toyota Motor Corporation (TSE: 7203; NYSE: TM), has endeavored since its establishment in 1937 to serve society by creating better products. As of the end of December 2012, Toyota conducts its business worldwide with 52 overseas manufacturing companies in 27 countries and regions. Toyota's vehicles are sold in more than 160 countries and regions. For more information, please visit www.toyota-global.com.

Contact:

Toyota Motor Corporation
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Tel: +81-3-3817-9926