FILE FILE: Toyota logo is shown at Los Angeles Auto Show in Los Angeles, California, U., November 30, 2017. REUTERS / Mike Blake / File Photo
PAULO SAO (Reuters) – Toyota Motor Corp (7203.Ton Thursday she announced an extension of 1 billion reais ($ 243.29 million) at a plant in the Brazilian state of Sao Paulo, in line with Volkswagen and General Motors in new investments in the region.
Toyota said the funding would allow the Sorocaba plant, which takes the models Etios and Yaris sedan, to produce a new vehicle model. It did not provide details of the new model.
Sao Paulo's state is in the heart of the auto industry in Brazil, which is the largest in South America afterwards, but recently lost its vigor against aggressive incentives offered by other states to attract manufacturers.
Ford Motor Co (F.NHe announced plans in February to close and sell one of his oldest Sao Paulo plants.
Governor Sao Paulo Joao Doria fought to keep manufacturing jobs in the state, devising a tax incentive program to bring 25% of value added taxes to automatic workers as long as they invested at least 1 billion and created they have 400 new jobs.
Toyota said, however, that Sorocaba's expansion will create only 300 jobs. The company, which has two other plants in Brazil, did not immediately respond to a question as to whether this would allow it to avail of the tax incentives.
“Over the past decade, with challenging times for the economy and the automobile industry, Toyota remained loyal in its commitment… growing in a sustainable way,” said Rafael Chang, leading Toyota in Brazil, i statement.
Reporting by Marcelo Rochabrun
(tTTTranslate) US (t) TOYOTA (t) BRAZIL (t) America (t) News Company (t) Auto and Truck Manufacturers (TRBC) (t) Japan (t) South America / Central America (t) Products / Services (t) Brazil (t) Asia / Pacific (t) Labor / Personnel (t) United States of America