Toyota (TM) to invest $338M to build new hybrid flex car in Brazil

Toyota Motors (NYSE: TM) announced Wednesday that the Japanese automaker will invest 1.7 billion reais ($337.68 million) to manufacture a new hybrid, flex-fuel compact car in Brazil.

Most vehicles in the country can run on 100% ethanol. However, Toyota’s new vehicle will reportedly run on both gasoline and ethanol in addition to its electric engine.

Toyota's announcement came at an event attended by the firm's local head, Rafael Chang, and Sao Paulo Governor Tarcisio de Freitas. Part of the investment - roughly 1 billion reais - will come from tax credits Toyota had with the state.

"Toyota believes in the Brazilian market and continues to invest in technology and innovation to meet consumer needs," Chang said. "It is a sustainable solution that also creates jobs and economic development".

The Sao Paulo state government said in a statement that engines for the new compact car, whose name was not revealed, will be built at Toyota's Porto Feliz plant, a move expected to create 700 jobs.

In 2019 Toyota launched Brazil's first hybrid flex-fuel vehicle, a version of its flagship sedan the Corolla.

The new model is set to be launched in Brazil in 2024 and sold in 22 Latin American countries.

Shares of TM are down 1.28% in afternoon trading on Wednesday.

By Michael Elkins | [email protected]

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