Toyota’s president, Katsuaki Watanabe, said a year ago that Toyota wanted to bring its dividend ratio to 30%, on par with healthy Western corporations, from its current place at 23%; and to assure a high return on equity. Toyota already started buying back its stock and appears ready to continue spending around $2 billion per year for another six years, according to Reuters. Toyota bought back substantial amounts of stock when it was being sold by Japanese banks needing to raise funds; that stock has outperformed other corporate investments.

Toyota shareholders have approved the repurchase of up to 30 million shares or 250 billion yen ($2.04 billion) over the next year.

As Toyoland predicted, Toyota is now talking with Isuzu about collaboration on diesel engines. Isuzu, which was the driving force behind GM’s lauded Duramax engines – diesels that are relatively quiet, fuel-efficient, and long-lasting – has also developed strong pollution controls for diesel engines in smog-prone areas of Japan. Toyota’s diesel technology is not especially advanced, and the purchase of a stake in Isuzu may well have been a step towards dealing with this as Europe and possibly the Americas move towards biodiesel. Plans for great increases in Tundra market share may also require a diesel option, traditional in American pickups.

Toyota announced today that Gary Convis, chairman of Toyota Motor Manufacturing, Kentucky, Inc. (TMMK), executive vice president of Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) and Gary Smallenberg, president of Canadian Autoparts Toyota, Inc., (CAPTIN) will both retire from the company.

“We thank both gentlemen for their focus of quality, vision and hard work during a very challenging period for Toyota in North America,” said Seiichi Sudo, president and COO of TEMA. “They have each had a tremendous impact on our growth. Both are true ambassadors for the Toyota Way and will be missed by all.”

Convis, 64, began his career with Toyota at New United Motor Manufacturing, Inc. (NUMMI), a joint venture with General Motors in April 1984 as plant general manager responsible for manufacturing operations and personnel. In May 2000, he joined TMMK, Toyota’s largest plant outside Japan as executive vice president and became president and eventually was named chairman. In June 2003, his responsibilities were expanded to include two additional assignments; managing officer at Toyota Motor Corporation and executive vice president of Toyota’s North American manufacturing operations. In his retirement, Convis will serve as senior executive advisor to Toyota.

Under Convis’ leadership, TMMK began producing the Camry hybrid in October 2006, the first Toyota hybrid vehicle built in North America and was responsible for bringing the North American Production Support Center to Georgetown, Kentucky, which trains Toyota’s 30,000 team members across the continent in a standardized manner.

Smallenberg, 60, began his career with CAPTIN in 1991 as vice president, secretary and member of the board. CAPTIN, located in Delta, British Columbia, Canada, is a wholly owned subsidiary of Toyota. In January 1998, he was appointed to president and corporate secretary and was also named as a member of the Board of Directors of Toyota Motor Manufacturing Canada Inc., based in Cambridge, Ontario.

Under Smallenberg’s leadership, CAPTIN has had a number of expansions, including a just-completed C$39 million/US$35 million expansion earlier this month ˆ CAPTIN’s sixth in its 24-year history.

Deryl Sturdevant, 51, vice president, will become the new president of CAPTIN effective immediately. Before joining CAPTIN one year ago, Sturdevant served in a variety of roles at NUMMI, including general manager of plant operations, and assistant general manager of human resources, environmental, engineering, maintenance and new model introduction. Sturdevant joined NUMMI in February 1990.

Andrew McFadyen, 45, general manager, has been promoted to vice president of manufacturing and engineering of CAPTIN.

TMMK, located in Georgetown, employs about 7,000 team members and is Toyota’s largest manufacturing plant in North America. Its annual capacity is 500,000 vehicles and engines and produces the Camry, Camry hybrid, Avalon and Solara vehicles as well as four cylinder and V6 engines. TMMK has a total investment of nearly $5.5 billion.

CAPTIN employs about 300 team members and manufactures over 42 different designs of aluminum wheels for Toyota cars and light trucks. The company supplies Toyota assembly and service organizations in Japan, the United States, and Canada. CAPTIN’s total capacity exceeds 1.7 million aluminum wheels annually. CAPTIN has a total investment is C$247million/US$223 million.

Toyota Motor Sales (TMS), U.S.A., Inc., today reported all-time best-ever sales of 269,023 vehicles for the month, an increase of 9.7 percent over May 2006. The former all-time best-ever record was 242,675 units in March 2007. The Toyota Division posted all-time best-ever sales of 237,176, up 10.9 percent over last May. The Lexus Division reported best-ever May sales of 31,847 units, an increase of 2.1 percent.

Toyota car sales were led by Camry, which posted best-ever May sales of 50,126, up 11.8 percent over the same period last year. Camry Hybrid reported sales of 6,853 units in May. The Prius hybrid gas-electric mid-size sedan posted all-time best-ever sales of 24,009, an increase of 184.9 percent over May 2006. The Yaris subcompact reported an increase of 30.5 percent, posting best-ever May sales of 10,949 units. Corolla reported all-time best-ever sales of 45,238 units, an increase of 4.7 percent over the year-ago month.

Toyota Division light truck sales were up eight percent, with a best-ever May total of 88,849 units. Light truck sales were led by the RAV4 compact sport utility vehicle (SUV), which reported best-ever May sales of 16,547, up 13.5 percent over the same period last year. The all-new Tundra full-size pickup reported all-time best-ever sales of 17,727, an increase of 113.8 percent over the year-ago month. Highlander and Highlander Hybrid posted combined May sales of 11,991, up 6.7 percent over the same period last year. The Highlander Hybrid gas-electric mid-size SUV reported sales of 3,312 units for the month. FJ Cruiser reported May sales of 4,639 units.

Scion posted May sales of 11,570 units. The tC sports coupe led the way with May sales of 6,615 units. The xB urban utility vehicle posted sales of 3,658 units for the month.

Lexus passenger cars reported best-ever May sales of 19,943 units, an increase of 4.8 percent over May 2006. Passenger car sales were led by the ES 350 luxury sedan with May sales of 8,572 units. The all-new LS 460 and LS 460 L reported combined sales of 3,196, an increase of 183.2 percent over last May. Combined sales of the IS 250 and IS 350 posted all-time best-ever sales of 5,722 units, up 19.5 percent over May 2006.

Lexus Division light trucks reported May sales totaling 11,904 units. The RX 350 and RX 400h enjoyed combined best-ever May sales of 9,798 units. The RX 400h hybrid luxury utility vehicle reported sales of 1,746 units for the month.