July 20 (Bloomberg) -- Toyota Motor Corp. President Katsuaki Watanabe comments on higher steel prices, higher interest rates in Japan, the U.S. auto market and cooperation with General Motors Corp.

Watanabe was speaking at Toyota's annual mid-year press conference in Tokyo.

On higher domestic interest rates:

``We don't think it will have a big impact on our customers in Japan.''

On the U.S. auto market:

``The U.S. market is fundamentally very strong. That's not changing, but the worrying issue is the higher oil price in the U.S. We have taken the higher oil price as well as the increase in the interest rate in Japan and set our 2006 targets.''

On cooperation with GM:

``The Nummi factory is a very important venture for Toyota. Operating the factory with GM really helps us learn a lot.''

``We haven't even thought whether we will participate in a GM-Renault-Nissan alliance or not. We are not considering how we can participate.''

To contact the reporter on this story: Kae Inoue in Tokyo kinoue@bloomberg.net

Last Updated: July 20, 2006 05:29 EDT