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New Mega Project From The USA Promises Billion-Dollar Investments In The Brazilian Automotive Sector, With The Potential To Generate Almost 1 Million Jobs Across The Country.
USA Mega Project In Brazil: Investment announcements in the automotive sector have been constant since last year. Renault kicked things off by announcing an investment of R$ 2 billion to expand its RGMP modular platform, totaling R$ 5.1 billion by 2027. In January of this year, GM followed suit, announcing an investment of R$ 7 billion by 2028. In February, Volkswagen responded by expanding its investment to R$ 16 billion by 2028. These investments promise to generate thousands of jobs in the country, boosting the economy and innovation in the automotive sector.
USA Mega Project Plans To Invest R$ 95 Billion
Recently, the USA has intensified its investments in Brazil, focusing on various strategic areas. The automotive industry is a significant highlight, with companies like Stellantis, VW, Toyota, Renault, and GM planning to invest a total of R$ 95 billion by 2030. These investments, in addition to generating jobs, aim at industrial expansion and the development of new platforms for hybrid and electric vehicles.
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New shoe factory in Ceará is expected to create 400 jobs and strengthen the local economy.
Already in early March, Toyota revealed that it has set aside R$ 11 billion by 2030 to expand its factory in Sorocaba (SP) and launch new products, starting with the Yaris Cross as widely discussed, although the brand has not released much information. Thus, hybrid production with flex engines will also take place in Brazil, at its Sorocaba factory, with engines coming from Porto Feliz (SP).
By the end of 2026, the Japanese brand will close its industrial facilities in Indaiatuba (SP), opened in 1998, following the same path as Honda, which transferred vehicle production from Sumaré to Itirapina, both in the state of São Paulo. The Japanese brand may produce a mid-sized pickup in Sorocaba, according to the local metalworkers’ union, but the brand has not confirmed this.
Stellantis Announces Investment Of R$ 30 Billion In The Automotive Sector
The major part of the USA mega project, however, falls to Stellantis, which will invest R$ 30 billion between 2024 and 2030, generating thousands of jobs. Carlos Tavares, Portuguese executive who leads the multinational conglomerate of 100 models from 14 brands, came to Brazil to announce personally.
In total, there will be 40 launches across four platforms with combustion, hybrid, and at least one electric engine. They will be distributed among the group’s three manufacturing complexes in Betim (MG), Goiana (PE), and Porto Real (RJ).
In the second half of 2024, the group will have its first flex hybrid model, certainly from the Fiat brand, using a 48-volt battery only as basic assistance to the combustion engine.
The first electric model from Stellantis in the USA mega project for the automotive sector will be launched in the second half of this decade. Thus, Chinese brands BYD and GWM will not be the only ones producing electrics in the country. What remains unknown is the battery production scheme.
Hyundai Closes Partnership With Caoa Chery For Vehicle Launches In The Automotive Sector
Hyundai also announced R$ 5.4 billion until 2032 and Caoa, R$ 4.5 billion until 2028, generating thousands of jobs. The two companies will work closely together, including industrially, to better utilize the Brazilian group’s factory in Anápolis (GO).
The total of R$ 95 billion from the USA mega project in the automotive sector over the next seven years led Automotive News, one of the world’s largest specialized media conglomerates, to highlight the significance of these investments from so many manufacturers in its daily news.
After the new agreement between Hyundai and Caoa, the South Korean manufacturer revealed its launch schedule. The initial focus will be on imports by the brand itself in close collaboration with the Brazilian group. The offering will be aligned with demand, which had not happened before.
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