Toyota Announces Its First Brazilian Engine Plant

Toyota Motor Corp. says it will erect an engine plant in Sao Paulo, Brazil, with capacity to make 200,000 powerplants per year. The facility, whose cost was not disclosed, is scheduled to open in the second half of 2015.

Toyota says the factory will supply engines that can run on gasoline-ethanol blends for locally produced Etios small cars and Corolla sedans.

The company currently imports its engines from Japan. Building them locally will help boost local content for the Etios and Corolla to 85%. Toyota will begin building the Etios next month at a rate of 70,000 units per year at its new plant in Sao Paulo.