JOINT VERNTURES AND AFFILIATES

Along with the numerous importers and dealers in the United States, Toyota has a number of joint ventures and affiliates. The establishment of Toyota Motor Sales, USA, Inc. in 1957 marked the beginning of the company's history in the United States. Total capital for the facility was $11 million; the company is 100% Toyota owned. In October, 1973, Toyota established Calty Design Research, Inc., an automotive design research center. The facility is 20% U.S. owned. In June, 1977, Toyota Technical Center, USA was established for auto testing, research, and information gathering; it is 10% U.S. owned. New United Motor Manufacturing, Inc. (NUMMI), in Fremont, California, is 50% GM owned. It was established in February, 1984, and can produce 250,000 Chevys and Toyotas annually.

Toyota's second plant in the United States is in Georgetown, Kentucky. It was scheduled to begin producing some 200,000 Camrys a year beginning in mid-1988. Of the two plants, the one in Kentucky is the more controversial. As with many DFI deals, Kentucky gave great concessions to lure Toyota to the state-including $125 million in subsidies and assistance, extravagant dinners for heads of the company, and great support from Governor Collins, who offered to buy the first car produced in the plant. 1

Toyota's influence on and involvement in the U.S. economy is further illustrated by the numerous companies in the United States that supply Toyota with all sorts of products. In 1983, Japanese imports of foreign-made parts reached $146 million; Toyota imported $143 million worth of these products, a 30% increase from 1982. The various companies supplying Toyota in 1983 included

Collins and Aikman, carpet

Michelin Tire Company, radial tires

Chatham Manufacturing, fabrics

GE Company, headlights

GM-RDP, valve lifters

GM Delco Products, door lock actuators

GM New Departure-Hyatt, fuel caps

Eagle Ottawa Leather Company, upholstery

Bendix Corporation, disc brake pads

PPG Industries, Inc., laminated glass

Garrett Corporation, turbochargers

Milliken and Company, fabrics

Corning, catalyst carriers

Rockwell International, light alloy wheels

Clearly, Toyota uses the products of many domestic companies in its production processes, thereby creating new jobs and increasing demand for its products.