Toyota to Begin Manufacturing the Corolla in Brazil

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced in Brazil on August 6 local time that it will build a new manufacturing facility for production of the Corolla passenger car in Indaiatuba, Sao Paulo, in cooperation with Toyota do Brasil, S.A., Industria e Comercio.

Attending the announcement ceremony at the Sao Paulo governor's mansion were Governor Mario Covas of the State of Sao Paulo, TMC Executive Vice President Akira Yokoi, TMC Director Koichiro Noguchi, and Toyota do Brasil President Tokuji Nagaoka.

With current and anticipated growth of the Latin American automobile market making the region more attractive, TMC decided to expand its vehicle production activities in Brazil, where it has been assembling the Bandeirante light commercial vehicle since 1959.

Construction at the 1,550,000m² site, which has been held by Toyota do Brasil since 1990, is scheduled to begin late this year, and production of the next-generation Corolla will start at the end of 1998. TMC will invest approximately US$150 million to set up a comprehensive manufacturing facility that will include stamping, welding, painting, and assembly shops. Production capacity will be 15,000 units per year, creating about 350 jobs. Initially, the vehicles will be sold only in the Brazilian market.

TMC considers this project to be only the beginning of an expansion of its business activities in Brazil and Latin America. As the regional auto market stabilizes and expands, and Mercosur free-trade provisions develop, Toyota would like to consider an expansion of the scale of production, the addition of new models, and exports to third countries.