Japanese carmaker Toyota has announced a BRL 1.7 billion (USD 336 million) investment to expand production at its Sorocaba plant in the state of São Paulo.
The investment will notably be used for the manufacturing of a new hybrid flex compact vehicle, to be sold in 22 Latin American countries. This hybrid flex car model will have a combustion engine that runs on both gasoline and ethanol, as well as a self-charging electric engine.
“It’s a sustainable solution, which generates jobs and economic development. We are pioneers in hybrid flex technology and in the continuous search for making mobility cleaner and more efficient,” said Rafael Chang, CEO of Toyota’s Brazil branch, as the investment was announced on Wednesday during an event with São Paulo state governor Tarcísio de Freitas.
The investment is funded through São Paulo state’s ProVeículo Verde program, which allows auto companies to use tax credits to develop less-polluting vehicles. This is the largest investment made through the program since its implementation last year.
The new production line in Sorocaba is expected to generate around 700 jobs in the area.
Toyota’s announcement comes as many carmakers in Brazil opted to halt production last month amid falling demand for vehicles.
“Toyota believes in the Brazilian market and will continue to invest in technology and innovation to meet consumers’ needs,” Mr. Chang said.
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