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Toyota’s industrial change ends a historic cycle in Indaiatuba and concentrates Corolla production in Sorocaba, within a billion-dollar plan that reorganizes factories, workers, and investments of the automaker in the São Paulo countryside.
Toyota is in the final phase of transferring industrial operations from Indaiatuba to Sorocaba, in the interior of São Paulo, as part of the factory reorganization plan announced by the automaker for Brazil.
With the change, the Indaiatuba unit will cease production of the Toyota Corolla sedan after almost three decades of operation, during which the factory was part of the company’s production structure and played a direct role in assembling the model.
Still without a public definition about the future of the area, the company informed that the fate of the industrial complex will be communicated at an appropriate time, after the completion of the transfer and measures aimed at the workers involved.
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In a statement, Toyota said that the future destination of the Indaiatuba factory “will be defined in due course” and that, at this moment, the priority is to complete the migration of activities and take care of the people involved in the process.
Corolla production changes address in the São Paulo countryside
Inaugurated in 1998, the Indaiatuba factory was Toyota’s second industrial unit in Brazil and accumulated, over 28 years of operation, production of over 1 million Corolla units, according to the automaker.
In the same plant, according to information released by the company, the world’s first hybrid flex models were produced, a technology that became part of the brand’s strategy in the Brazilian automotive market.
The production of the Corolla sedan will be concentrated in Sorocaba, a city that already hosts part of Toyota’s operations in the São Paulo countryside and will now receive the production activities that were carried out in Indaiatuba.
This move is part of the R$ 11 billion investment plan until 2030, announced by Toyota in March 2024, with plans to expand production capacity, new hybrid flex vehicles, and industrial reorganization in the state of São Paulo.
Within this package, R$ 5 billion was confirmed until 2026, including hybrid flex products, expansion of the factory structure in Sorocaba, and gradual transfer of production operations from Indaiatuba to the new industrial configuration.
Investment in Sorocaba concentrates Toyota’s new phase
According to Toyota, concentrating activities in Sorocaba aims to strengthen the competitiveness of the Brazilian operation and sustain long-term growth, in a scenario of expanding electrified vehicle production.
The automaker also reported that industrial consolidation will allow for process modernization, increased production capacity, and more efficient integration of production lines with the supplier chain established in the country.
According to the announcement made by the company, the transfer would occur gradually, starting in mid-2025, with completion expected by the end of 2026, within the timeline associated with the expansion of the Sorocaba unit.
The strategy also foresees battery assembly in Sorocaba starting in 2026 and the production of components related to the hybrid system at the Porto Feliz unit, also located in the interior of São Paulo.
With the reorganization, Toyota intends to reduce industrial stages distributed among units and concentrate the manufacturing of current and future models in an integrated structure, according to information released by the automaker itself.
Workers had an agreement for transfer or VDP
The decision to end production in Indaiatuba led to a negotiation between Toyota and the Metalworkers’ Union of Campinas and Region, the entity responsible for representing the workers of the unit.
In May 2024, the automaker and the union reached an agreement involving 1,470 plant professionals, with alternatives for transfer to Sorocaba or joining the Voluntary Dismissal Program.
Under the conditions disclosed at the time, workers who opted for dismissal would be entitled to a VDP of 45 salaries, plus two payments for each year worked, as reported by the union.
For employees who accepted the transfer and continued living in Indaiatuba, the package included two salaries, R$ 15,000, and chartered transportation; those who moved to Sorocaba would also receive an additional 2.4 salaries.
The agreement also provided stability in Indaiatuba until July 2026, the date then indicated for the end of activities, as well as job security until July 2029 for relocated workers.
Before the decision, there were strikes and negotiations between the parties regarding benefits, stability, and transfer conditions, points directly linked to the labor impacts of the industrial change.
Indaiatuba unit still has no defined destination
Although the production transfer is associated with the expansion plan in Sorocaba, Toyota has not yet informed what will be done with the physical structure of the Indaiatuba factory after the operations end.
The industrial complex operated for almost three decades in the municipality and was linked to the direct generation of jobs, as well as the movement of suppliers and services related to automotive production.
So far, the automaker states that the priority is to complete the reorganization of activities, support the affected workers, and conduct the transition according to the already announced plan.
While the Sorocaba unit is set to concentrate a larger share of the Brazilian operation, Indaiatuba ends its participation in the production of the Corolla and the manufacturing of the hybrid flex models mentioned by the company.
The decision on the future use of the former plant will depend on Toyota’s decision, which has not yet presented a public timeline to communicate the fate of the Indaiatuba industrial complex.
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