From the R$ 1.7 billion investment, R$ 1 billion will be export credits devolutions from the SP government
By Alzira Rodrigues | 4/19/23 | Translated by Jorge Meditsch
Toyota announced this Wednesday, 4/19, the investment of R$ 1.7 billion to produce a compact flex-fuel car in Sorocaba, SP. The event happened at Palácio do Bandeirantes, in São Paulo, the state government headquarters. From the total invested, R$ 1 billion should come from credits owed by the state of São Paulo’s government, most of them generated by exports.
Still unnamed, the new model is being developed by Brazilian and Japanese engineering teams, told Rafael Chang, Toyota do Brasil’s president. According to Chang, the compact will have a hybrid flex-fuel and a traditional combustion engine version. Production and sales should begin at the end of 2024, demanding 700 temporary workers, 500 for the plant of Sorocaba and 200 for the engine factory in Porto Feliz, SP. Currently, Toyota’s workforce has six thousand employees.
“The new compact will be exported to 22 Latin American countries and will provide important scale gains for our Brazilian operations”, said Chang. “The adjustment of the assembly lines and contacts with suppliers for the production will start immediately. We will bring the battery from Japan and assemble the hybrid-flex powertrain in Porto Feliz. We want to ensure a good nationalization ratio for our entry model”.
The company did not reveal the product’s prices but made it clear it would be the brand’s cheapest. The announcement happened as some manufacturers discuss with the government the possibility of a green entry car simpler and cheaper than the models currently available.
Toyota’s project is supported by the Programa ProVeículo Verde (Program for Green Vehicles) launched by SãoPaulo’s government in March 2022. According to São Paulo’s governor, Tarciso de Freitas, it is the largest investment from this program, involving R$ 1.6 billion to develop a 100% new model and R$ 61.8 million to update another flex hybrid already in production.
Chang told that Toyota’s idea for an entry vehicle of this kind was old but gained strength after definitions announced by the state government, including those related to taxes. The Japanese manufacturer’s projects were approved on April 10 by the State of São Paulo’s Economic Development Policy Evaluation Agency, composed of representatives from the Finances and Planning and Economic Development Secretariats.
The company already produces two hybrid flex models, the Corolla and the Corolla Cross. These vehicles have a combustion engine and an electric motor.
“Toyota believes in the Brazilian market and keeps investing in technology and innovation to meet consumers’ demands. This is a sustainable solution that generates jobs and economic development. We are pioneers in hybrid flex technology and a continuous search to make mobility cleaner and more efficient”, said Toyota do Brasil’s president.
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