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Toyota to Build New Brazilian Plant

A sign that things are improving at the beleaguered automaker?

by on Jul.16, 2010

An inexpensive Corolla for emerging markets emerges in Brazil.

Toyota Motor Corporation (TMC) said today it will build a new plant – its third – in Sorocaba, São Paulo, Brazil for Toyota do Brasil Ltda. (TDB), its Brazilian sales and manufacturing company.

TMC purchased land for the plant about 90 km west of the city of  São Paulo in July 2008, just before the reckless practices of Wall Street caused the ongoing global Great Recession, and the wreck of the auto business.

TMC has now decided to start construction in September 2010, with production of a newly developed Corolla-class compact car to begin in the second-half of 2012. It will be based on the Etios, which goes into production in India late this year.

Initially, approximately 70,000 vehicles will be produced annually at the plant, constructed at a cost of $600 million and employing  approximately 1,500 people. Plans include production for export to unspecified emerging markets.

TDB was established in 1958 as TMC’s first overseas production base. Currently, the company produces parts at its São Bernardo Plant and the Corolla at its Indaiatuba Plant. However, Toyota, in spite of its pioneering efforts, remains a tiny player in the region with just a 3% share in the booming Brazilian market, where Fiat is first with a 20% share and fighting off  a resurging General Motors.


Toyota Output Drops 24% during first half of F.Y.

Good news, though, as overseas production increases slightly.

by on Oct.28, 2009

The Japanese automaking giant remains mired in the Great Recession.

The Japanese automaking giant remains mired in the Great Recession.

Toyota Motor Corporation (TMC) said in Tokyo this morning that its global production dropped more than 24% during the first half of its fiscal year, which ended in September 2009. Its export business from Japan is off 45%, which will put extreme pressure on financial results when they are announced next week.

Most analysts expect TMC to continue to report large losses for the near future.

However, sales for the Toyota brand in Japan during September increased for the second consecutive month. Sales of Lexus vehicles were 3,044 units, a 31.8% increase.

In Japan, Toyota now has a 44.4% share of market, excluding mini-vehicles, a 2.6% increase, and a record high for the month of September.



In a potential bright spot, TMC reported overseas production had its second consecutive month of increase, due to added production mainly in Asia and North America. Here, the strengthening Yen will cut into potential revenue from the increases, putting further pressure on profitability.