SAO PAULO (Reuters) - Japanese auto maker Toyota (NYSE:TM) officially announced on Tuesday an 11 billion real ($2.22 billion) investment in Brazil, saying it will be made in two parts by 2030, and include the output of a new vehicle specially designed for the country's costumers.
Brazil's vice president and minister for industry, Geraldo Alckmin, had previously on Sunday unveiled Toyota's investment, but had not given details including its period extension.
Toyota's CEO in Brazil, Evandro Maggio, told Reuters this is the first investment plan the automaker releases in the country, as until now it had been unveiling its investments project by project.
From the 11 billion reais, Maggio said 5 billion reais are expected to be invested until 2026, and another 6 billion reais, which Toyota still not decided how to use, up to 2030.
The automaker said in a statement it intends to build a new hybrid flex vehicle by 2025, and a car specially designed for the Brazilian market, without confirming a date.
Toyota, which is latest global automaker to unveil plans for extra investment in Brazil this year, following companies such as Volkswagen (ETR:VOWG_p), General Motors (NYSE:GM) and Hyundai Motor (OTC:HYMTF), own three factories in the country, all located in Sao Paulo state.
The investment plan also includes an expansion of its factories in the cities of Porto Feliz, which will start to build engines with hybrid systems by 2025, and Sorocaba, which will host batteries output starting in 2026.
However, all the operations from its Indaiatuba unit will be transferred to Sorocaba between 2025 and 2026. Maggio said workers will be able to choose to migrate with the operations - the cities are an hour apart by car.
The company did not say by how much its production capacity in the country will increase with the investments.
($1 = 4.9569 reais)