Toyota Technical Center Completes Purchase of State of Michigan Property

[Avalonman]

May 1, 2006 - Ann Arbor, Michigan – Toyota Technical Center (TTC) a division of Toyota Motor Engineering and Manufacturing North America, closed on the purchase agreement with the State of Michigan for $11 million and completed the sale for the approximately 700-acre parcel located in York Township. In April 2005, TTC contracted to purchase the property from the State of Michigan, Department of Management and Budget.
For the past 12 months, TTC has been conducting various due diligence activities in preparation to close on the property. Later this month, TTC will begin by removing existing structures formerly occupied by the State Psychiatric Hospital. The land will be remediated and construction of the first development phase will begin in the fall of 2006. TTC will build a 400,000 square foot facility to house its expanding engineering design operations and will add 400 new jobs by 2010. The capital investment is projected to be approximately $150 million.
TTC will maintain operations at its current Ann Arbor campus. The York Township property will serve as the second TTC campus and will allow for immediate and future expansion for Toyota North America engineering, vehicle development and research operations. TTC's expansion is designed to complement Toyota's increased localization and growth of manufacturing and sales in North America.
Toyota (NYSE:TM) established operations in North America in 1957 and will operate 15 manufacturing plants in North America by 2008. There are more than 1,700 Toyota, Lexus and Scion dealerships in North America which sell more than 2.5 million vehicles a year. Toyota directly employs over 38,000 in North America and its investment here is currently valued at more than $16.8 billion, including sales and manufacturing operations, research and development, financial services and design. Toyota's annual purchasing of parts, materials, goods and services from North American suppliers totals more than $26 billion. According to a 2005 Center for Automotive Research study, Toyota, along with its dealers and suppliers, has generated nearly 400,000 U.S. jobs, including jobs created through spending by direct, dealer and supplier employees.

[RAV4EVR]