Sustained Innovation and Creativity - Toyota Industries Corporation

Focus onBusiness2Car Air-Conditioning CompressorCar Air-Conditioning Compressor Manufacturing BasesTDDKMunichDNTSYSDToyota IndustriesCorporationDWHITACKACTISMACIDetroitTACGToyota Industries producescompressors through a globaltripolar structure encompassingEurope, the United States and Asia,including Japan, established throughdirect investments. We also licenseproduction in Asia (excluding Japan)and South America. By carrying outSUBROSproduction near our markets, weDNIAare better able to supply productsConsolidated subsidiariesLicensed manufacturersLocal officesDNBRprecisely tailored to local marketneeds while reducing shipment costsand exchange rate risks.In the United States, during fi scal 2006 Toyota Industriessold 7.6 million car air-conditioning compressors, primarilycomprising fi xed-displacement compressors (includingexports and local production), to major U.S. automakersand Japanese auto manufacturers in North America. InEurope, we sold approximately 5.6 million compressors, mainlyvariable-displacement compressors (including exports andlocal production), during fi scal 2006.Operating an Optimal Global ProductionStructureWith bases in Japan, North America, Europe and Asia, ToyotaIndustries has established an optimal global productionstructure for its Car Air-Conditioning Compressor Business.In Japan, our largest production base, we have built aneffi cient three-plant integrated production structure thatencompasses all phases of operations from production ofmaterials to processing and assembly.In the United States, Michigan Automotive Compressor,Inc. (MACI)* produces swash-plate fi xed-displacementcompressors. In July 2004, Toyota Industries and DENSO jointlyestablished TD Automotive Compressor Georgia, LLC (TACG)**,a second North American compressor production basesituated near Atlanta in the U.S. state of Georgia that beganoperations in December 2005. Although fi xed-displacementcompressors have been the main type of compressorused in North America, we expect that rising globalenvironmental awareness will spur increased demand forConsolidated Compressor Sales(Million units)20.018.016.014.012.0World’s first mass-producedelectrically driven compressorfor hybrid vehiclesWorld’s first two-waycompressor for hybrid vehiclesWorld’s first variable-displacementclutchless compressor19.118.217.910.08.06.0World’s first 10-cylinderswash-plate fixeddisplacementcompressorWorld’s first one-way swash-platevariable-displacement compressor4.02.00FY80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05OthersVariable-displacement compressorFixed-displacement compressor28 Toyota Industries Corporation Annual Report 2006