Infrastructure of the interior of São Paulo attracts new Toyota plant
Gazeta Mercantil - 02/18/2008
The cities of Santa Bárbara d'Oeste and Sorocaba, in the interior of São Paulo, may become the home of the new plant of Japanese maker Toyota that seeks to increase its market share in the Mercosur (South Cone Market) with the launching of a minivan. The company has started consulting the suppliers for the production of components that will equip the new car - that may be the compact Yaris, a car with the most adequate profile for most South American consumers. Together with some car parts companies, the maker has held meetings even at its headquarters in Japan. As in every operation involving a large industrial investment, Toyota does not confirm it. But the market sources are almost sure that Sorocaba will shelter the assembly of cars and Santa Bárbara d'Oeste would produce engines. Why Sorocaba and Santa Bárbara d'Oeste? Served by good roads and close to the large centers of consumers and the port of Santos, the region would be the best way to flow the production between Brazil and the Mercosur, besides being a metal-mechanic region. Toyota has its main plant in Indaiatuba (SP), geographically located between the two cities, less than 50 kilometers away from Sorocaba and Santa Bárbara. Besides, it already has several suppliers in the region of the interior of São Paulo. An almost unified industrial park might have influenced the decision in favor of São Paulo, which already has trained workforce in compliance with rigorous Japanese production standards. Currently, Toyota's market share in the Brazilian market is 3.1%, ending 2007 with the sale of 72 thousand vehicles between light commercial vehicles and cars. The maker has already announced having ambitious plans for Brazil. It intends to be among the four main makers - positions currently occupied by Fiat, Volkswagen, GM and Ford, respectively. The growth in Brazil is important for Toyota to dominate the market - it wants 15% of the worldwide sales in 2012 - since the Country is among the eight more important markets. Toyota has a hard task ahead in Brazil. To get out of the 8th place and be among the four first ones it will have to make huge investments. Each percent point last year was equivalent to R$ 750 million (US$ 426.14 million), taking into consideration the average value of R$ 30 thousand (US$ 17 thousand) per car. In fourth place, Ford ended last year with 10.5¨%. Just to get to the size of Ford Toyota will have to sell nearly R$ 5 billion (US$ 2.84 billion).