With confidence on the rise, carmakers predict billionaire investments in Brazil

With confidence on the rise, carmakers predict billionaire investments in Brazil

Chamber Articles Category: Economic News Post Date: 10/04/17 Source: BrazilGovNews By: BrazilGovNews
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In the wake of the great performance in auto exports and improved economic indicators, companies have begun investing to get projects off the ground. This year alone, five major carmakers have announced over R$ 10 billion in investments to expand, build and improve assembly lines. The size of the bets placed in Brazil is a sign of how much these companies believe in the future of the country, specialists say.

Projections from economists explain the reason for this bet in Brazil. Expectations show the country back on track for growth. This week, analysts have revised growth projections of the Brazilian economy upward for this and next year. Analysts now expect the country's Gross Domestic Product (GDP) to advance 0.70% in 2017, compared to an earlier estimate of 0.68%.

For 2018, projections point to a 2.38% growth in the Brazilian economy. Previously, this estimate was at 2.30%. The figures are included in the Focus Survey, a weekly document prepared by the Central Bank that compiles estimates from about 100 market analysts.

With this scenario on the radar, Toyota recently announced that it will invest R$ 1 billion in its Sorocaba (SP) unit for the manufacture of the Yaris. Production will begin in the second half of 2018 and is expected to generate 500 new jobs, according to the company.

More investments

The Japanese carmaker had already announced a R$ 600 million investment in March for the production of a new generation of Corolla engines. The new engines, which previously would have been imported, will now be produced at the Toyota factory in Porto Feliz (SP). The investment will increase the unit's production capacity from 108,000 to 174,000 engines per year and is expected to generate 250 new direct jobs. Read Full Article