Despite a significant downturn in the US car industry, Toyota is going ahead with plans to establish a research institute in Michigan. It will employ 60–70 scientists, who will focus largely on developing ways to mitigate motor vehicles' environmental impact.

Last April the company announced the creation of the Toyota Research Institute of North America in Ann Arbor. It plans to spend US$100 million during the next four years on research topics, to include energy efficiency, environmentally friendly materials and fuel optimization.

Toyota spokeswoman Cindy Mahalak says the shaky economy isn't affecting plans for the research institute. “The $100 million was not an additional investment. It was already in place,” she says. The institute's use of an existing space in the Toyota Technical Center helps bolster the research budget, she adds. Leading the institute is Noboru Kikuchi, a professor of mechanical engineering at the University of Michigan and a director of Toyota research and development laboratories in Japan.

The institute has already hired 40 researchers and administrative staff, Mahalak says. It plans to add 10 more research scientists by the end of this year and another 20 by 2010. Toyota is currently advertising five research positions (most requiring a doctorate) in the areas of microelectric mechanical systems, biotech materials, nanomaterials and battery research.

The other positions will include opportunities for postdocs and students, according to a company spokesman. Earlier this year, Toyota advertised for two collaborators from academic universities and national labs for research in catalysis and nanotechnology at the centre as part of its quest to cut greenhouse-gas emissions. The spokesman declined to comment on whether the collaborations are in place.

According to one industry analyst, Toyota's decision to go ahead with its research institute plans in the face of a weak industry reflects the company's strong financial position globally. “The auto manufacturers are not all in the same position, by any means,” says Tom Libby, senior director of industry analysis for J. D. Power and Associates in Westlake Village, California. Pursuing research even in an uncertain economic climate is a wise move, he adds. “You need new products and processes to remain competitive.”