Kanto Automobile, a comprehensive automotive body manufacturer, has been part of the Toyota Group with factories in east Japan since its foundation in 1946. Starting from the TOYOTA SPORTS 800, the company has been developing and producing a wide range of passenger cars, including top-of-the-line cars such as the CENTURY, luxury cars such as the SOARER and the WINDOM, FR sedan cars such as the MARK II and ALTEZZA, and medium/compact cars such as the CELICA and COROLLA (SEDAN, SPACIO, etc.).

In 1989, Toyota Motor announced its management vision, "Increase domestic production to six million." The number represented roughly a 143% increase over the actual number of cars manufactured in 1990, which was 4.21 million. Although the actual number of cars manufactured by Kanto Automobile in 1990 was 468 thousand, which was about 10% of the total production of Toyota cars, it had to expand its production capacity to 600 thousand a year to achieve the goal. Thinking back over the situation at that time, Mr. Shigeru Aoyama, the project general manager at the Iwate Plant, said, "We had been manufacturing Toyota cars, trying to keep our share of 10% of the total Toyota production. Because our share was not guaranteed, we had to demonstrate our intention to attain the production target by increasing capacity. In those days, we had the Higashifuji Plant in Shizuoka Prefecture and the Yokosuka Plant in Kanagawa Prefecture. However, because it was not enough to just expand production lines at those plants, we needed to construct a new plant to achieve the new goal."

At the time when Toyota announced their management vision, Japan was entering its bubble economy period, and the general belief among manufacturers at the time was "The more products we manufacture, the more money we can make." All automobile manufacturers were enthusiastically expanding their production systems and seeking to hold on to their manpower. The employable workforce, however, was severely limited, and companies were faced with the difficulty of having to reduce working hours. Kanto Automobile realized that they should not construct their new plant in an urban area where they would be unable to find a large plot of land and where they would be removed from abundant labor resources. They began to search for a suitable site in the provinces.

The site of the new plant should satisfy the following conditions. "It should be spacious enough to allow us to build a test track where we could carry out final checks on the product quality and to make plant expantions in future." "The location should make it easy to acquire parts and transport the finished products." Mr. Aoyama said, "First, our attention was drawn to sites around Tokyo. We received offers from various local governments. Before we could agree on a site, we received an invitation from Iwate Prefecture and Kanegasaki Town. After making careful comparisons, we found that Kanegasaki Town satisfied the conditions and was the most suitable place for our new plant." Eventually, in November 1993, the Kanto Automobile decided to construct their new plant in Kanegasaki Town in Iwate Prefecture, because of four advantages: the high quality of the personnel resources, the existence of the land and the infrastructure required to construct the plant, the cooperation and support of the local governments including preferential schemes, and good access to the region because of the superhighways, Shinkansen railroads, and airports." Mr. Aoyama said, "Employees at the Iwate Plant are willing to take advice from others and can be depended on. Because few workers leave the company, we can save time in training newcomers. Also, they are a highly-motivated workforce. Our experiences in Iwate have helped me to realize the fact that Iwate has a long history. About 1,200 years ago. the Imperial Army advanced into Iwate where the grain yield was high and minerals such as gold, silver. copper, and iron were mined.

The Oshu-Fujiwara Culture flourished in the prefecture in 1,000 to 1,200 years ago and many great men including Takashi Hara and Kenji Miyazawa, famous writers, were produced. Iwate is rich in natural beauty, with hot springs and good food. In my role as a project general manager Iwate Plant, I guide our clients and guests to various places to introduce them to the merits of Iwate." In this way, Mr. Aoyama who himself comes from the Kanto region has become an authority on Iwate affairs.

thousand cars a year, which was necessary in order to maintain their share of 10% of the total number of Toyota cars produced in Japan. However, with the burst of the bubble economy, the age when "the more cars we manufacture, the more money we can make" was over. As a result, about 300 employees out of the total of about 650 had to be moved to either the Yokosuka Plant or the Higashifuji Plant. However in 1995, they were able to move back to Iwate because of the increased demand for the SPACIO, developed in the Iwate Plant as a new model in the COROLLA series.

At present, Kanto Automobile manufactures cars in the Iwate Plant (Iwate Prefecture) and the Higashifuji Plant (Shizuoka Prefecture). The total number of cars manufactured in fiscal 2004 was estimated at 359,000. The Iwate Plant produces four types of cars for export: the WINDOM, ALTEZZA, ALTEZZA GITA, and MARK X (estimated number of cars manufactured in fiscal 2004: 141,000), and also produces and exports the LEXUS brand of cars to international specifications. These products are ranked high in quality and are highly rated in the USA. The plant now plans to expand its production scale from 150,000 to 250,000 a year and take on 500 employees by the end of October, 2005, including some who will be sent to affiliated companies.

In addition to making improvements in their production system, and based on the theme, "Look for openings where local companies can expand into the field of car parts," the Iwate Plant is taking part in the cooperation between industry and universities together with Iwate Prefecture and Iwate University. Mr. Aoyama said, "We can set up a new company by matching our technology with Iwate University." Cooperation between industry and universities is indispensable for future technical development.

Believing that enterprises should seek for continuous development and growth in cooperation with the local community, Mr. Aoyama sits in on meetings with staff from neighboring municipalities to invite enterprises to Iwate. He said, "I have spread information widely on the merits of Iwate. Inviting companies to the region and absorbing people who are returning to their hometowns from the cities all promote regional development and employment. Just after we moved into Iwate, we published our own magazine with information for families moving into this region, which included data supplied to us by neighboring municipal governments on various facilities including kindergartens, schools, hospitals, and banks. Also, municipal government staffs gave a warm reception to the families visiting the region to see the neighborhood of their new settlement in advance. As a result of these efforts, we were able to accept about 400 employees from our Yokosuka Plant. Communication with local people has been encouraged by accepting guests on our plant tours, by holding our "All Toyota Group Festival" at which we display various types of Toyota cars including special vehicles for disabled persons, and by holding various events in cooperation with local social welfare councils."

The cooperative relationships that exist between Kanto Automobile and Kanegasaki Town and between the company and Iwate Prefecture including local municipalities are functioning favorably. A cooperative relationship between the company and local government is encouraged by holding information and personnel exchanges and by our common will to grow together. Here in Iwate, both parties are making history with their close and cooperative relationship.