Toyota to invest $700 million in Brazil; reportedly cuts global sales target

Japanese automaker Toyota Motor Corp. is planning to invest up to $700 million in Brazil to install a new manufacturing unit, Brazilian Trade and Industry Minister Miguel Jorge said yesterday. This is part of an aggressive drive by automakers in emerging markets in the wake of declining sales in developed nations.

Toyota will install the new unit in Sorocaba, a city in Sao Paulo state. The unit will have a capacity to produce 150,000 light vehicles per year and will start its operations in 2011.

The plant is expected to create 2,500 jobs for the local populace.

According to the minister, company regional president Shozo Hasebe in a meeting with Brazilian President Luiz Inacio Lula da Silva unveiled Toyota's investment.

Global automakers are interested in expanding their presence in Brazil to take advantage of record domestic demand.

Surging local demand is being fueled by solid economic growth and economic stability, which has increased household incomes and access to credit. Domestic auto sales hit a record in the first half of 2008, totaling 1.41 million units, up 30 per cent from the same period the year before.