{"id":87525,"date":"2024-03-06T12:19:08","date_gmt":"2024-03-06T15:19:08","guid":{"rendered":"https:\/\/murray.adv.br\/?p=87525"},"modified":"2024-03-06T12:19:12","modified_gmt":"2024-03-06T15:19:12","slug":"the-conditions-behind-toyotas-big-ticket-bet-in-brazil","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/","title":{"rendered":"The conditions behind Toyota\u2019s big-ticket bet in Brazil"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em><strong>Market and political issues explain R$11bn investments until 2030<\/strong><\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>03\/06\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/Kx4Nwxpd4uvDnTaPSJ_Fpf56Wtg=\/1482x922:3840x2646\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/p\/y\/OuE3jnQzqBEnlAUvJClA\/img-3082.jpg\" alt=\"Evandro Maggio \u2014 Foto: Divulga\u00e7\u00e3o\" style=\"width:720px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Evandro Maggio \u2014 Foto: Divulga\u00e7\u00e3o<\/em><\/p>\n\n\n\n<p>The circumstances that led Japanese automaker Toyota to announce an investment package of R$11 billion for Brazil until 2030, the largest in the company\u2019s 66-year history in the country, include market and political issues. In an interview with Valor on Tuesday (5), following the announcement ceremony that took place at the Sorocaba factory, Evandro Maggio, Toyota CEO in Brazil, cited three factors that helped convince the company\u2019s global leaders.<\/p>\n\n\n\n<p>The first was related to the market. Toyota launched the first dual-fuel hybrid car manufactured in Brazil in 2019, a decision that was widely regarded as sound. The model was well accepted in Brazil and abroad, turning the automaker into the largest exporter in its industry. The car is exported to 22 countries.<\/p>\n\n\n\n<p>Part of the new investments will be used to increase production capacity in Sorocaba, S\u00e3o Paulo, and to the development of two new dual-fuel hybrid vehicles. As it has been announced, the first model will be a compact car to be assembled from 2025 onwards. Toyota has not yet disclosed the second model it plans to release.<\/p>\n\n\n\n<p>\u201cWe would love to talk about it, but it is still very confidential,\u201d Mr. Maggio said. Asked if the announcement would possibly take place this year, the executive insisted that he could not provide further details.<\/p>\n\n\n\n<p>The second key factor was the release of credits amounting to R$1 billion from Tax on Circulation of Goods and Services (ICMS) on exports by the carmaker that had been retained by the S\u00e3o Paulo state government. \u201cThe actions by the state government, with the release of the credits we had, were key to make such investment viable,\u201d the executive said. Present at the ceremony, Governor Tarc\u00edsio de Freitas commented on the matter. \u201cWe released R$1 billion in ICMS credits to facilitate this investment.\u201d<\/p>\n\n\n\n<p>The third point mentioned by the CEO was federal government program Mover, aimed at decarbonizing the car industry. \u201cWe believe there is a [federal] government policy, with Mover, providing predictability and competitive conditions that help with demand,\u201d he stated. Geraldo Alckmin, vice-president and minister of Development, Industry, Trade and Services, also participated in the event.<\/p>\n\n\n\n<p>\u201cThe conditions are many. First, there is demand for our dual-fuel hybrid. And the adjoining conditions contribute to the investment. We cannot attribute it [the investment] to one single factor,\u201d Mr. Maggio explained. Currently, 40% of production is exported and it could increase with the new plans.<\/p>\n\n\n\n<p>Mr. Maggio was evasive when asked whether the extension of tax incentives for vehicles produced in the Northeast and Central-West regions, approved during the tax reform vote in December, had put the R$11 billion investment at risk. Toyota signed an open letter against the extension, along with Volkswagen and GM.<\/p>\n\n\n\n<p>\u201cToyota values competitiveness on equal terms. We have always supported and encouraged competitiveness, but it has to be on an equal footing. We believe that from now on the conditions will be adjusted gradually,\u201d he added.<\/p>\n\n\n\n<p>The investments include an operational restructuring with the expansion and concentration of production in Sorocaba and the shutdown of the Indaiatuba unit, both in the S\u00e3o Paulo state. The relocation of operations will start in 2025 and is expected to be completed the following year. The automaker said the Indaiatuba unit\u2019s 1,500 employees will have the opportunity to work in Sorocaba. \u201cThe investment will be in both bodywork and engines, to develop batteries for these vehicles and to relocate operations.\u201d<\/p>\n\n\n\n<p><em>(Lucas Ferraz contributed reporting.)<\/em><\/p>\n\n\n\n<p>*Por Carlos Prieto\u00a0\u2014 S\u00e3o Paulo<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Market and political issues explain R$11bn investments until 2030 03\/06\/2024 Evandro Maggio \u2014 Foto: Divulga\u00e7\u00e3o The circumstances that led Japanese automaker Toyota to announce an investment package of R$11 billion for Brazil until 2030, the largest in the company\u2019s 66-year history in the country, include market and political issues. In an interview with Valor on [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[24689,24688],"class_list":["post-87525","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-the-conditions-behind","tag-toyotas-big-ticket-bet-in-brazil"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The conditions behind Toyota\u2019s big-ticket bet in Brazil - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The conditions behind Toyota\u2019s big-ticket bet in Brazil - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Market and political issues explain R$11bn investments until 2030 03\/06\/2024 Evandro Maggio \u2014 Foto: Divulga\u00e7\u00e3o The circumstances that led Japanese automaker Toyota to announce an investment package of R$11 billion for Brazil until 2030, the largest in the company\u2019s 66-year history in the country, include market and political issues. In an interview with Valor on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-06T15:19:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-06T15:19:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s2-valorinternational.glbimg.com\/Kx4Nwxpd4uvDnTaPSJ_Fpf56Wtg=\/1482x922:3840x2646\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/p\/y\/OuE3jnQzqBEnlAUvJClA\/img-3082.jpg\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"The conditions behind Toyota\u2019s big-ticket bet in Brazil\",\"datePublished\":\"2024-03-06T15:19:08+00:00\",\"dateModified\":\"2024-03-06T15:19:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\"},\"wordCount\":603,\"image\":{\"@id\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/s2-valorinternational.glbimg.com\/Kx4Nwxpd4uvDnTaPSJ_Fpf56Wtg=\/1482x922:3840x2646\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/p\/y\/OuE3jnQzqBEnlAUvJClA\/img-3082.jpg\",\"keywords\":[\"The conditions behind\",\"Toyota\u2019s big-ticket bet in Brazil\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\",\"url\":\"https:\/\/murray.adv.br\/en\/the-conditions-behind-toyotas-big-ticket-bet-in-brazil\/\",\"name\":\"The conditions behind Toyota\u2019s big-ticket bet in Brazil - 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