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Toyota Motor Corporation (NYSE: TM) ) is the second largest automaker in the world, and together with its subsidiaries produces a full range of model offerings from mini vehicles to large trucks. Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 8.2 million vehicles in calendar year 2005. As of March 2006, besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 52 manufacturing companies in 27 countries and regions, employs over 286,000 people worldwide (on a consolidated basis), and markets vehicles in more than 170 countries and regions. In the U.S., we market vehicles under the Toyota, Lexus, and Scion brands.

Basic Concepts with Regard to the Environment

Since its foundation, Toyota has conducted research and development based on the business spirit of "contributing to society by making things and making automobiles." In order to codify this spirit, in 1992 Toyota adopted the "Guiding Principles at Toyota Motor Corporation". Based on these principles, Toyota established the "Comprehensive Approach to Global Environmental Issues," also known as the "Toyota Earth Charter," and is conducting its business activities with the environment positioned as a top-priority management issue. Toyota promotes environmental initiatives that take into consideration the entire lifecycle of a vehicle by implementing thorough environmental management at all stages of production, logistics, use, disposal and recycling.

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