Toyota also advanced localization on the development side by working to strengthen the functions of its North American design and R&D facilities Calty Design Research, Inc. and TTC. One major success was the Avalon, Toyota's first North American market-exclusive vehicle, which launched in 1994. The Avalon was an "American born and bred" model, with TTC responsible for engineering and Calty in charge of design.

The two local engineering units continued to play a key role in development localization, handling the internal and external design and engineering of U.S.-specific models including the 1996 new-model Camry, the first-generation Solara in 1998, and the second-generation Avalon in 1999.

In addition, the second-generation Tundra, which launched in 2006 with the slogan "An American truck, built by Americans" was a huge local-led project involving collaboration between engineering, design and manufacturing units. In 2004, before embarking on the project, Calty established Calty Design Research Inc. at Ann Arbor within TTC's Ann Arbor, Michigan grounds, working closely with TTC's design function to develop the Tundra's exterior and interior styling.