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Emergency Mobilization of Toyota Reorganizes Production, Delays Launch of SUV, and Maintains Focus on Hybrids While Engine Plant Is Undergoing Reconstruction in Interior of São Paulo.
Toyota set up a wide emergency operation to keep its factories running in Brazil after the storm on September 22, which destroyed the engine plant in Porto Feliz (SP).
With the unit non-operational and still under reconstruction, the automaker began importing engines from Japan and Indonesia, focused production on flex-hybrid Corolla and Corolla Cross, postponed the schedule for the Yaris Cross, and maintains the forecast to rebuild the São Paulo plant by 2026.
According to information passed to the union, there are no collective vacations scheduled for the units in Sorocaba and Indaiatuba this year-end.
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Porto Feliz Factory and Impact on Production
The storm that hit Porto Feliz on September 22 ripped off the roof, damaged internal structures, and flooded the Toyota engine factory’s warehouses. The company confirmed the extent of the damage, with no reported deaths among workers.
The forced interruption led to the temporary suspension of production in all the brand’s factories in the country.
The unit was responsible for the 1.5 and 2.0 engines used in models like Corolla, Corolla Cross, and Yaris.
Without this supply, the assembly lines were halted, and dealerships reported a decrease in the availability of vehicles produced in Brazil.
In an agreement with the Metalworkers Union of Sorocaba and Region (SMetal), the company implemented lay-off and emergency vacations for part of the employees, especially those stationed in Porto Feliz.
The goal, according to the union, was to preserve jobs while assessing the damage and defining the recovery plan.
Imported Engines and Return of Hybrids
With the Porto Feliz factory out of operation, Toyota adopted the emergency import of engines as a strategy to reactivate the assembly lines.
The units in Sorocaba and Indaiatuba resumed operations prioritizing the flex-hybrid versions of the Corolla and Corolla Cross, equipped with imported engines from Japan.
For vehicles utilizing the 1.5 engine, such as the Yaris hatch and the upcoming Yaris Cross, the supply began to come from Indonesia, as confirmed by the union and sources linked to the operation.
According to Leandro Soares, president of SMetal, the Sorocaba factory resumed production at full pace to meet the demand for hybrids.
“The Sorocaba plant is operating at 100% capacity with hybrids. The employees returned from the lay-off and are working normally. However, the completely combustion-powered versions have not returned to production yet.”
Meanwhile, in Porto Feliz, Toyota set up temporary warehouses to make adjustments to the imported engines, including the conversion to flexfuel technology.
The company informed the union that this procedure will also be applied to the 100% combustion versions when production resumes more broadly in 2026.
Revised Production Volume and Recovery Effort
Before the storm, the automaker was working with an estimated production close to 180 thousand vehicles in 2025, according to industry projections.
After the stoppage, industry sources indicate that the volume may range between 150 thousand and 160 thousand units, a reduction primarily attributed to the exclusively combustion versions, which are still absent from the assembly line.
Sorocaba and Indaiatuba reorganized shifts and internal flows to accelerate the production of hybrids.
According to technicians monitoring the automotive sector, the forecast is that a near-normal pace will be achieved in the first half of 2026, as the supply of imported engines stabilizes.
As both plants are working to replenish the lost volume during the months of interruption, the union states that there is no indication of collective vacations at the end of this year.
The maintenance of production in December aims to meet the dealership network and reduce the impact of the forced stoppage.
Yaris Cross Delayed, but with Strong Pre-Sales
The storm also affected the schedule of the Yaris Cross, the brand’s new compact SUV.
The debut, initially scheduled for October 16, 2025, was postponed following the stoppage of the engine factory.
Before the destruction of the plant, pre-series units of the model had already been produced in Sorocaba and displayed at the 2025 Auto Show, held between November 22 and 30 in São Paulo.
The early presentation served to detail versions and the mechanical set, including the hybrid-flex option.
Toyota is now working with a start of mass production in February 2026, when the vehicle will begin to arrive at dealerships.
The expansion of the Sorocaba plant, in the final stages of construction, will be used to accommodate the complete line of the model and gradually replace part of the production currently installed in Indaiatuba, which is scheduled for decommissioning in 2026.
According to data provided by the company to the sector, the Yaris Cross has already accumulated pre-sales of 8,500 units, with down payment of R$ 20 thousand.
Prices range from R$ 161,390 to R$ 189,990.
The first deliveries are scheduled for February and March 2026.
Reconstruction of the Plant and Continuation of Investments
Toyota has structured a plan to fully rebuild the Porto Feliz factory by 2026, aligned with the investment program planned for Brazil, which totals around R$ 11.5 billion by the end of the decade.
The project includes the expansion of Sorocaba and the gradual migration of production from Indaiatuba, which will cease operations.
The unit affected by the storm employs approximately 800 workers, currently on temporary arrangements derived from the collective agreement signed after the disaster.
In Sorocaba and Indaiatuba, the return of teams occurred in stages, as the arrival of imported engines allowed the resumption of operations.
For Leandro Soares, the management of the situation has followed what he considers to be an alignment between the company and the union.
“The relationship with the company has been important at this moment. Toyota brought support from the headquarters, avoided layoffs, and maintained investments. The workers are more at ease now. The worst is over.”
In the coming months, the company will need to simultaneously manage the reconstruction of the plant, logistics for importing engines, production of flex-hybrid models, and the arrival of the Yaris Cross at dealerships, in addition to expanding Sorocaba to accommodate part of the volume currently coming from Indaiatuba.
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