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Driver Training and Thorough Management of Transport Conditions to Ensure Safe, High-Quality Transportation in Thailand

In Japan and overseas, the Global Production Parts & Logistics Division procures a wide range of components that are needed to manufacture automobile parts, supplying them to Japanese automobile parts manufacturers with production bases located overseas. In Thailand, a key country of destination for these components, we operate one of the country's leading trucking companies. We concentrate on training drivers to prevent accidents while transporting these goods.

Conducting Traffic Safety Training for Drivers in Thailand, Where Accidents per Vehicle Number Four Times That of Japan

Thailand, a key export destination for our global production parts and logistics business, is also a world leader in automobile production, manufacturing 1.5 million vehicles in 2010.

As Thailand lacks an advanced rail network, trucks tend to be the transportation mode of choice. However, this creates a number of problems for society; driver's licenses are relatively easy to acquire, and traffic accidents are widespread. In 2009, Thailand had approximately 7,900 traffic accidents, which is nearly four times the number in Japan, calculated on the basis of the number of registered vehicles.

TTKL (a joint venture between Toyota Tsusho, Toyota Tsusho Thailand and Kimura-Unity Co., Ltd.), which handles our transportation in the country, has some 1,200 drivers operating more than 700 trucks on a daily basis. We conduct traffic safety training in an effort to protect the lives of these drivers, as well as to ensure that the products we handle are delivered safely.

Taking a Variety of Approaches to Ensure Safe Driving

First, before they are admitted to the crew, new drivers undergo approximately one month of retraining on driving techniques. They also undergo danger prediction training to help them identify sources of danger that have led to actual accidents. We conduct a number of other initiatives, as well, such as accumulating information about dangerous routes from other drivers and compiling this information into a "risk map" handbook. We also incorporate other safety measures into daily activities. For example, to prevent potential accidents by drivers who feel unwell we conduct driver roll calls both before and after work and create driving logs as part of our thoroughgoing efforts to promote safe transportation.

Furthermore, TTKL is building a specialized training facility (scheduled for completion in September 2011) that will encourage safety by simulating dangerous road conditions. We have great expectations for this facility, of which Japan has only a few and is the first of its type in Thailand.

Concentrating on Transportation Quality Improvements and Environmental Preservation

We are an avid proponent of efforts to enhance transportation quality and environmental preservation. As part of this focus, each month we prepare KPI^* reports for each of our customers. These reports, which indicate monthly transportation performance, are designed to enhance customer satisfaction. By periodically reviewing delivery routes for individual customers, we work to reduce overall travel distances and lower CO₂ emissions.

• *KPI: Key performance indicator

Business Overview of the Global Production Parts & Logistics Division

1. Supply parts procured from Japanese automotive parts and components manufacturers to autoparts makers that are developing business overseas
2. Collect and transport the parts and materials needed for automobile production to automakers with bases overseas

Features: The division consolidates a myriad of products from manufacturers of parts and components, for efficient delivery onward to overseas production bases. This reduces shipping costs and realizes supply stability.

Thai Automobile Production and Registration

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