Toyota announces $2 billion Brazil investment by 2030

On Tuesday, Toyota, a Japanese automaker, formally announced an investment of 11 billion real ($2.22 billion) in Brazil. The investment will be split into two parts and will be completed by 2030. One of the sections will be the production of a new car tailored to the Brazilian market.

Geraldo Alckmin, Brazil's VP and minister of industry, had earlier on Sunday announced Toyota's investment, but he had withheld details, such as the length of the agreement, until now.

This is the first investment plan the carmaker reveals in the country, according to Reuters, who spoke with Toyota's CEO in Brazil, Evandro Maggio. Up until now, the investments have been unveiled project by project.

Maggio estimated that 5 billion reais will be invested by 2026 from the 11 billion reais, and another 6 billion reais, the purpose of which Toyota has not yet determined, will be invested until 2030.

Without specifying a year, the carmaker announced in a statement that it plans to produce a new hybrid flex vehicle and a Brazilian market-specific model by 2025.

All three of Toyota's Brazilian facilities are in the state of Sao Paulo. The Japanese carmaker is the most recent international player to announce plans for further investment in Brazil this year, joining the ranks of Volkswagen, GM, and Hyundai Motor.

As part of the investment plan, the plants in Porto Feliz and Sorocaba will be expanded. The former will begin building engines with hybrid systems by 2025, and the latter will host battery production beginning in 2026.

The Indaiatuba unit will continue operations as usual until 2025 or 2026, when they will be moved to Sorocaba. Workers will have the option to move with the business, according to Maggio; the two cities are only an hour away by vehicle. The corporation remained mum on the exact amount by which the investments will boost its domestic production capability.

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