TOYOTA CITY, Japan –

In an effort to speed up manufacturing after the Japanese tsunami and quake, Toyota Motor Corp. and subsidiaries Toyota Auto Body Co. Ltd. and Kanto Auto Works Ltd. announced a deal Wednesday that will convert the latter two facilities into wholly-owned subsidiaries of Toyota via share exchanges.

Moreover, Kanto Auto Works, Central Motor Co. Ltd. and Toyota Motor Tohoku Corp. have decided to discuss a proposed merger and integration of the three companies, with a target date of July 2012.

“Toyota believes that the new corporate structure resulting from these agreements will maximize the strengths of each Toyota group company, enable Toyota to utilize its group resources to the fullest extent and further advance monozukuri (or conscientious manufacturing) in Japan,” the company revealed Wednesday.

Historically, Toyota said its group of manufacturers have supported the global development of Toyota and Lexus brand vehicles mostly through the development and production of individual models. However, going forward, this new deal is designed to involve each group auto manufacturer in the integrated planning, development and production of specific vehicle types.

“Because Toyota believes that enabling management to make decisions that are in line with the group’s overall direction and increasing speed of management are crucial in order to facilitate these structural changes, it reached mutual agreements with Toyota Auto Body and Kanto Auto Works,” Toyota management stated.

“Through this new corporate structure, each vehicle manufacturer will be further specialized and will be better able to pay close attention and respond quickly to the preferences of customers around the world,” officials continued.

To hear TMC president Akio Toyoda discuss this new deal, visit www.toyota-global.com/company/video_news/.