Re Agreement

Toyota Motor Corporation
12 July 2001



             TOYOTA MOTOR CORPORATION and PSA PEUGEOT CITROEN 
        Agree to Enter a Cooperation on Joint Development and Production 
                            of Small Cars


Brussels, July 12, 2001. TOYOTA MOTOR CORPORATION (TOYOTA) President Fujio Cho
and PSA PEUGEOT CITROEN CEO Jean-Martin Folz signed today a memorandum of
understanding and an agreement for the Joint development and production of
small, entry-level passenger vehicles primarily designed for European markets.
Production is scheduled to start in 2005. This new platform will be dedicated to
the production of vehicles for TOYOTA and the two brands of PSA PEUGEOT CITROEN.

In order to respond to the changing needs in Europe, a market where demand for
compact vehicles remains as strong as ever and is forecast to increase in the
years ahead, TOYOTA and PSA PEUGEOT CITROEN have decided to jointly introduce a
new class of cars, positioned below current entry-level models.

The vehicle concept to be Jointly developed by the two companies will be a lean,
modern four-seat model that features the most advanced technologies in the areas
of safety, reliability and environmental protection. Equipped with the latest
generation of 1.0-liter gasoline engines and 1.4-liter diesel engines, it will
be especially fuel-efficient.

TOYOTA and PSA PEUGEOT CITROEN will pave the way for a new market of vehicles,
which will thoroughly retain all the essential features of a real car, and will
offer, at attractive prices, efficient solutions to environmental and urban
mobility-related requirements. Target customers also include current buyers of
used or outdated cars.

The project will offer clearly differentiated models and specific styles for the
vehicles of the two groups while guaranteeing strong commonality for the car
structure and components.

TOYOTA will be in charge of development and production while PSA PEUGEOT CITROEN
will be responsible for procurement. The two groups will set up a joint venture
company on a 50/50 basis. A final agreement will be completed by year-end. 
A production site in Europe will also be decided at year-end. The plant is
expected to have a production capacity of around 300,000 units a year.

Total investment for this cooperation is estimated at approximately 1.5 billion
euros.


Press Contacts :

Toyota Motor Corporation
Tetsuo Kitagawa / Taro Takada of International Communications Dept. 
Tel. [phone]/9178        Fax. [phone]

PSA Peugeot Citroen
Hugues Dufour / Marc Ferrant of Press Dept. 
Tel. [phone] 99     Fax. [phone]

Toyota Motor Europe Marketing and Engineering
Jacques Pieraerts of Corporate Communications Dept. 
Tel. [phone]             Fax [phone]